ARK Invest CEO Cathie Wood expressed concerns about the White House underestimating the recession risks in the US economy due to tariff policies. Wood also shared her views on the future Federal Reserve policy and crypto investments.
Economic Risks According to Cathie Wood
Speaking virtually at the Digital Asset Summit in New York, Cathie Wood noted that US Treasury Secretary Scott Bessent is not worried about a recession, while she believes the slowing velocity of money is a significant indicator that typically associates with recession.
Prospects of Changes in Monetary Policy
Wood feels that if a recession does occur, declining GDP will provide the President and the Fed with more freedom to enact tax cuts and monetary policies. Expectations for multiple Fed rate cuts are increasing as projections indicate potential reductions by year's end.
Long-term View of ARK Invest on Crypto Investments
ARK and Cathie Wood have been active crypto investors for many years. ARK and 21Shares’ spot Bitcoin ETF was approved in January 2024, attracting significant net assets. Wood also remarked that long-term innovation investments would be beneficial despite current market fluctuations, and emphasized the importance of favorable regulations for attracting institutional investors.
Amid economic fluctuations, Cathie Wood and ARK Invest continue to bet on long-term investments in cryptocurrencies and innovative technologies, emphasizing the significance of regulatory changes in attracting institutional investors.
