When a billionaire investor issues as dire of a warning as Bill Ackman just issued, most people sit up and listen. Business Insider reports that Ackman is not holding back as he tries to ring the alarm bell for everyone in the country about where he believes the economy is headed. He says we are headed for a direct “train wreck” if the Federal Reserve continues raising interest rates. Ackman tweeted the following on Wednesday following the latest interest rate hike from the Federal Reserve: “When combined with the higher cost of debt and deposits due to rising rates, consider what the impact will be on lending rates and our economy. The longer this banking crisis is allowed to continue, the greater the damage to smaller banks and their ability to access low-cost capital.” [tweet_embed]March 25, 2023[/tweet_embed] This time, the rate hike was only for 25 basis points, the smallest type of increase that the Fed can make. However, many market experts had hoped that the Fed would pause rates where they were or even slash them slightly. However, the Federal Reserve sees a high level of inflation as something that must also be combated, and that is why there are a lot of mixed feelings about what just happened with the Federal Reserve’s move at this time. Ackman added the following as he continued to throw some rocks at the recent decision made by the Federal Reserve regarding interest rates: “Trust and confidence are earned over many years but can be wiped out in a few days. I fear we are heading for another train wreck. Hopefully, our regulators will get this right.” The Central Bank lifted rates to a total of 4.75-5%. The decision to continue to raise rates was not a certainty. Some had viewed the turmoil caused by the failure of Silicon Valley Bank and the rough waters that this has caused for many other regional banks across the industry as a possible reason to stop rate hikes. However, it doesn’t look like that is the way that Chairman Jerome Powell and others at the Fed feel about interest rates. High inflation rates remain a concern and a factor in how people view these decisions. However, many also worry that continued rate hikes could mean economic turmoil. Ackman believes that economic turmoil will be the order of the day.