Billionaire investor Bill Ackman said that the Federal Reserve’s latest decision to raise interest rates by 25 basis points, combined with Treasury Secretary Janet Yellen’s remarks that there are no plans for unlimited deposit guarantees, was a “big mistake” that puts more pressure on smaller banks and sends the economy toward a “train wreck.”
Ackman issued his warning in a series of tweets over the course of the past several days, after the Fed on Wednesday raised interest rates by a quarter of a percentage point and Yellen told lawmakers at a Senate hearing that there were no immediate plans for a broad expansion of deposit insurance to guarantee balances above the $250,000 coverage cap.
