US should fight inflation with ‘increased immigration’

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Hedge fund billionaire Bill Ackman argued that the US should open its doors to “increased immigration”, adding that such a change in policy would be more effective in combating inflation than raising interest rates.

“Doesn’t it make more sense to reduce wage inflation with increased immigration than to raise rates, destroy demand, put people out of work and cause a recession?” ekman wrote on twitter late Thursday.

The CEO of Pershing Square Capital said the Federal Reserve is facing an uphill battle against key challenges, including the current wave of massive wage inflation that is pushing prices higher and eroding corporate profits.

“Inflation can be reduced by reducing demand and/or increasing supply. The Federal Reserve can only reduce demand by raising rates, a very blunt tool,” he wrote. “Wage inflation will likely continue until rates rise to restrictive levels.”

Bill Ackman, CEO of Perishing Square Capital
“Doesn’t it make more sense to reduce wage inflation with increased immigration than to raise rates, destroy demand, put people out of work and cause a recession?”
Bloomberg via Getty Images
Pershing Square chief executive Bill Ackman said increasing immigration may be more effective at combating inflation than higher interest rates.
Getty Images/IEEM

According to Bloomberg, Ackman – who has a net worth of $2.5 billion – ended his tweetstorm by saying, “If we can target immigration policy to achieve important political objectives like catalyzing the Russian brain drain in America So why shouldn’t we?”

Ackman’s remarks come on the heels of the Federal Reserve raising 0.75 percentage points for the third time in a row this week, after Fed Chairman Jerome Powell said, “We have to get inflation behind us; I wish there was a painless way to do so.” The way would have been. There isn’t.”



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