Billionaire hedge fund manager Bill Ackman again urged the Federal Reserve to reduce rising inflation by pledging to keep interest rates higher for longer without signaling plans to reverse course. “The biggest risk to the U.S. economy isn’t a rate hike by the Fed. It’s inflation that is hurting consumer and business confidence and driving consumers out of a home.” new home, a car, gas and meals on the table,” Ackman said Tuesday. series of tweets. “The Fed understands this and as such, I would expect Powell to demonstrate a hawkish determination not only to keep rates higher for longer, but also open to ending interest rates higher than 3.4%. meaningfully,” he added. The Fed is expected to raise rates by another three-quarters of a point on Wednesday, bringing the lending rate between 2.25% and 2.5%. The Fed began raising interest rates from near zero in March to combat inflation that has reached levels not seen in four decades. Hedge fund manager Pershing Square believes that inflation has become ingrained in the economy and is obvious to every American. The consumer price index rose 9.1% in June from a year earlier, higher than the Dow Jones estimate of 8.8% and the fastest rate of inflation since November 1981. Ackman said there is the possibility that Fed Chairman Jerome Powell will be asked about the timing of a rate cut. , added that it was important for him to signal the central bank was willing to move in the right direction and aggressively raise interest rates until inflation was under control. “The more the market believes the Fed will reverse course immediately, the less effective rate hikes will be at curbing inflation, and the more the Fed will have to raise rates,” Ackman said. This is not the first time that a prominent investor has publicly called on the Fed to take serious action to control raging inflation. In the past, he has said that the market will skyrocket once investors can be confident that the era of runaway inflation is over.