Cathie Wood says that the US is in ‘rolling stagnation’ when the money rate collapses, but this will help to unlock the Fed rate cuts and lower taxes

• Ark Invest’s Cathie Wood He warned that the economy could go to one or two negative neighborhoods because concerns about occupational safety encouraged to save money instead of spending the Americans. However, the decline will help Federal Reserve reduce interest rates and prepare Trump management to reduce taxes.

Cathie Wood, Founder and CEO of Ark Invest, declines in short -term expectations of the economy, but it is waiting for the Federal Reserve and Trump administration to take steps soon.

One Interview with Bloomberg TV On Tuesday, during the regression of the market, Tesla said that he had purchased shares and crypto assets such as Coinbase and Robinhood.

While President Donald Trump’s aggressive tariffs and labor cuts will turn the economy into stagnation, his stocks have fallen since mid -February. Wall Street predictions, some of them put around 50%walk the stagnation rates.

Wood, Bloomberg, referring to the economic decline affecting different sectors at different times, “We think we are in stagnation and in fact we will see some negative neighborhoods here, and the reason for this is the money.” He said.

Authority added that concerns about occupational safety want to save the Americans more than their cash and foresee one or two negative quarters. However, in his opinion, this will be fed for Trump management and ratio cuts for tax cuts.

One day after Wood’s speech, while keeping the Fed rates constant, central bankers lowered growth forecasts for the year and removed inflation expectations between higher tariffs.

However, the policy makers continued their views for two ratio deductions this year, and during the news conference of the President of the FED President Jerome Powell, the dovish tone often guaranteed that some “Fed” in the Wall Street, that is, the rates would fall if the economy deteriorates.

In its name, Wood, as inflation is further cool, food, gasoline and some rents are more than two or three ratio deductions this year. In addition, innovation also contributes to facilitating prices by leading to “good deflation”.

“We think the FED will have more freedoms than most people think in the second half of this year.” He said. “We could only see more than the number I suggested, two to three sections.”

Meanwhile, DoubleLine Capital CEO Jeffrey Gundlach To CNBC on Thursday The federal government warns that budget cuts will weaken economic growth and that a chance of a stagnation is higher than most people believe.

“I think it is higher than 50% in the next few quarters.” Gundlach said Gundlach. He said. “I think I’m 50 to 60 (percent).”

When the Dimmer views of the US economy and stocks were once combined with relative performance in the delay markets, he eroded his belief in American exception.

GundlacH thinks it is time for investors to move away from US assets and point to Europe and developing markets.

“I think this will be a long -term trend,” he said.

This story initially took part in Fortune.com