“Another metric suggests that Fed policy already is too restrictive: the dollar,” Wood said. “Against expectations, the dollar has increased more than 13% from its lows last year, a real burden for emerging and other markets with dollar-denominated debt, and a powerful deflationary force.”
Wood is unlikely to be a supporter of the central bank’s policy, given that the Feds’ hawkishness has heavily impacted her firm’s investment funds.
The Ark Innovation ETF, which specialized in investing in technology companies, has plummeted almost 50% this year. It was down almost 70% from its February 2021 peak as of Wednesday. Ark Innovation ETF is leading the way to the worst performing month since its creation.
The tech-heavy Nasdaq index fell 4% Tuesday to its lowest level since December 2020.
