Hedge fund manager Bill Ackman on Friday asked the Federal Reserve to begin slowing down the support it has provided for the U.S. economy during the coronavirus pandemic.
In a series of tweets, the founder of Pershing Square Holdings, with $13.1 billion under management, said the Federal Reserve should start turning off the monetary supply right away.
He teed up his position by saying he met last week with officials at the Fed’s New York branch, which houses the trading desk that carries out the wishes of officials regarding interest rates and the monthly asset purchase program.
“The bottom line: we think the Fed should taper immediately and begin raising rates as soon as possible,” he said.
“We are continuing to dance while the music is playing,” Ackman continued, “and it is time to turn down the music and settle down.”
The statements come just a few days before the Federal Open Market Committee is set to begin its two-day policy meeting Tuesday.
Ackman said he’s beginning to position his portfolio for higher rates.
“As we have previously disclosed, we have put our money where our mouth is in hedging our exposure to an upward move in rates, as we believe that a rise in rates could negatively impact our long-only equity portfolio,” he tweeted.