Billionaire hedge fund manager and Pershing Square Capital (OTCPK: PSHZF) CEO Bill Ackman explained through a series of tweets that a 2% borrowing rate is not neutral when inflation is trending around 9%.
“The bond and stock market have rallied substantially since as the implication is that rates need not increase much more. The problem is that we are not close to a neutral rate. While 2.25 to 2.25% may be a neutral rate with 2% inflation, it is an extremely accommodative rate with inflation at 9%,” Ackman said.
