Legendary investor Sam Zell warns of liquidity crisis, says odds of economy going into recession 'very high'




 

Equity Group Investments founder and chairman Sam Zell voiced his disapproval of the Fed's inflation strategy Thursday, telling "Cavuto: Coast to Coast" that Jerome Powell "missed the boat" on inflation, allowing "super-low" interest rates to exist for too long.

SAM ZELL: What we're dealing with here is a situation where I think the Fed missed the boat and allowed super-low interest rates to exist too long. The Fed finally woke up and started taking liquidity out of the system and raising interest rates. I think that's very much called for. The real question is, are they, did they raise them fast enough to slow the process down so that we don't have to go too much higher in order 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 somewhat so far, but I'd say it's really too early to declare victory.

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I think the odds of us going into recession are very high, and whether that recession will be very painful or not, I think still remains to be seen, but it's very hard for me to believe that we're not moving into an area with a lot higher interest rates and a lot of people sitting on the sidelines avoiding to make commitments.

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