Legendary investor Sam Zell warns of liquidity crunch, says chances of recession ‘very high’

Sam Zell, founder and chairman of Equity Group Investments, on Thursday disagreed with the Fed’s inflation strategy, saying in Cavuto: Coast to Coast that Jerome Powell “missed the boat” on inflation, which is “extremely low ” has allowed interest rates to exist for long periods of time. .

SAM ZELL: What we’re dealing with here, I think, is that kind of situation The Fed missed the boat and allowed extremely low interest rates to exist for too long. The Fed finally woke up and began removing liquidity from the system and raising interest rates. I think it’s much needed. The real question is, did they raise it fast enough to slow down the process so that we don’t get too high to get the results we’re looking for? Obviously, the results we’re looking for are a reduction in inflationary pressures, which we’ve seen quite a bit so far, but I’d say it’s too early to declare victory.

TOP WALL STREET CEOS are raising recession warnings as a fight against a 2023 surge.

I think there is a very high probability that we will go into recession and Whether this stagnation will be too painful remains to be seen, I guess.but I find it hard to believe that we are moving into an area where interest rates are so high and so many people are sitting on the sidelines avoiding obligations.

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