Mark Mobius is a veteran emerging markets investor.
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The Federal Reserve could hike interest rates as high as 9% according to Mark Mobius.
Mobius told Bloomberg TV Wednesday that the Fed believes it has to hike past the inflation rate.
He says “the Fed has to raise interest rates higher than inflation in order to kill inflation.”
The Federal Reserve could hike interest rates as high as 9%, according to Mark Mobius.
The famed investor told Bloomberg TV Wednesday that because inflation has remained persistently high, “the Fed has to raise interest rates higher than inflation in order to kill inflation.”
Mobius made similar comments on CNBC’s Squawk Box earlier in the day, where he posited that the central bank could increase benchmark rates by 1%-2% at each meeting to get past the rate of inflation.
Mobius’ comments come a day after the Dow Jones Industrial Average suffered its worst rout in roughly two years on the heels of the latest consumer price index reading. Headline inflation pulled back slightly year-over-year to 8.3%, after climbing to 9.1% in July.
Mobius also touched on cryptocurrencies, which he says the central bank is ignoring at its peril.
“[P]eople at the policy-making level are not paying attention to the cryptocurrencies, which results in trillions of dollars in turnover,” he said.
While crypto isn’t as large of a focus point compared to the monetary supply, according to Mobius, digital assets are “having a wealth effect on many many people.” He added that he sees bitcoin in particular as a major indicator of where markets will go in the future.