Cathie Wood rejects Fed’s inflation ‘jawboning,’ pivots back to deflation narrative

Cathie Wood rejects Fed’s inflation ‘jawboning,’ pivots back to deflation narrative

Wall Street’s rate-hike jitters have wreaked havoc on high-growth tech stocks — and Cathie Wood’s Ark ETFs were front and center for the damage yet again.

Still, Wood dismissed concerns over inflationary pressures, reaffirming an earlier assertion that deflation remains the focus for her firm during a webcast on Tuesday. The Ark Invest CEO also said that price increases were likely to ease as supply chain issues resolve.

Wood’s remarks come amid Federal Reserve Chair Jerome Powell's confirmation testimony on Tuesday, in which he signaled that if the pace of price increases fails to slow, the central bank will get more aggressive with raising short-term borrowing costs.