Bill Ackman says the economy is starting to slow and the Fed is likely done hiking

Pershing Square’s Bill Ackman on Monday sounded alarms on the economy, which he believes has begun to decelerate on the back of aggressive rate hikes.

“I think the Fed is probably done. I think the economy is starting to slow,” Ackman said on CNBC’s “Squawk Box.” “I think the level of real interest rates is high enough to slow things down.”

In a bid to fight stubbornly high inflation, the Federal Reserve has taken interest rates to the highest level since 2006, while signaling higher borrowing costs for longer. The central bank forecast it will raise rates one more time this year. Many on Wall Street have grown worried about a recession as the economy feels the lag effects from massive tightening measures.

“High mortgage rates … high credit card rates, they’re starting to really have an impact on the economy,” Ackman said. “The economy is still solid, but it’s definitely weakening. Seeing lots of evidence of weakening in the economy.”

On Friday, Ackman said U.S. regulators have approved his unique SPAC structure, and he’s ready to hunt for a deal with a “large private growth company.”

The Securities and Exchange Commission greenlit what Ackman has called a SPARC — a special purpose acquisition rights company — in which he will inform investors of the potential acquisition before they pledge funds.

This is breaking news. Please check back for updates.

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