The economy is about to collapse, according to Michael Novogratz, a Wall Street veteran whose market prospects are not exactly rosy. “The economy is about to collapse,” Novogratz told MarketWatch. “We are about to enter a very rapid recession, and you can see that in many ways,” he said yesterday before the Federal Reserve decided to undertake its largest interest rate hike in nearly three decades.
“Housing is starting to collapse … there are layoffs in several industrial sectors and the Fed is stalled,” Novogratz said as the US central bank agreed on an unusual 0.75 percentage point rate hike, stepping up efforts to quell an inflation rate that is around a maximum of 40 years. This is the largest increase in the central bank’s policy rate since November 1994.
Before the Fed announced its decision, Novogratz had speculated that the central bank could have raised interest rates by 75 basis points and that the market would have rallied following this news and also predicted that equities would fall in the future. next days. Novogratz claimed that stocks are in the process of bursting a bubble, referring to the soaring prices of Swiss luxury watches and other goods.