Cathie Wood says the US is in a ‘rolling recession’ as money velocity collapses, but that will help unlock Fed rate cuts and lower taxes

• Ark Invest’s Cathie Wood He warned that the economy can turn to a quarter or two negatives amid the “circulating recession” as a worry over job security that motivates Americans to save money instead of spending it. But the recession will help liberalize the federal reserve to reduce interest rates and establish the Trump administration to reduce taxes.

The founder of ARK Invest and CEO Cathie Wood is diligent on the outcome of the economy in the short term, but he is expected to climb the Federal Reserve and Trump administration soon.

In an interview with Bloomberg TV on Tuesday, she also indicated that she was buying Tesla shares and encryption assets such as Coinbase and Robinhood during the stagnation period in the market.

The shares have declined since mid -February, as investors worry that president Donald Trump’s tariff and the reduction of the workforce will direct the economy to stagnation. Wall Street experts were holding a recession, as some put them about 50 %.

“We believe that we were in a rolling stagnation and that we will actually see some negative circles here, because the speed of money is collapsing,” said Wood, referring to economic contractions that affect different sectors at different times.

She added that concerns about job security drives Americans to save more money and predict a quarter or two quarterly. But from its point of view, this will lead to the preparation of the Trump administration for tax cuts and price discounts.

The next day, Wood spoke, the Federal Reserve kept fixed prices while central bankers reduced their growth expectations for this year and raised inflation expectations amid a higher tariff.

But politicians have maintained a large point of view of price discounts this year, as the Speaker of the House of Representatives, which Jerome Powell did in general, confirmed during his Wall Street press conference that the “federal reserve situation” remains in play, which means that rates will decrease if the economy is poor.

For its part, Wood sees price discounts or three of this year – or perhaps more than that – where inflation cools, with food prices, gasoline and some rents already. In addition, innovation also leads to a “good shrinkage”, which contributes to further mitigating prices.

“We believe that the Federal Reserve will have greater degrees of freedom in the second half of this year, which most people believe,” she said. “We can see more than the number you just suggested, from two to three discounts.”

Meanwhile, CNBC CEO told CNBC on Thursday that federal government budget discounts will weaken economic growth and warned that the chance of recession is higher than most people believe.

“I actually think it is higher than 50 % in the next few quarters,” said Gundlash. “I think 50 to 60 (percent) is where I am.”

The low views of the American economy and stocks, along with the relative performance in the markets once, have eroded the belief in the so -called American exception.

Gundlach believes that it is time for investors to diversify away from American assets, pointing to Europe and emerging markets.

“I think this will be a long -term trend,” he said.

This story was originally shown on Fortune.com

2025-03-23 17:01:00