Economist David Rosenberg Critiques Bill Ackman's US Treasuries Bet: 'Destined To Be As Offside...As He Was On Herbalife'

Billionaire investor Bill Ackman’s wager against US Treasuries is being criticized by well-known economist David Rosenberg.

Rosenberg, the founder of Rosenberg Research, contradicted Ackman’s views on persistent high inflation. He suggested that declining US rents could lead to a “melt” in inflation, implying that the Federal Reserve might soon stop hiking interest rates. This poses a stark contrast to Ackman’s position, who is shorting 30-year US Treasuries as a hedge against high inflation, reported Business Insider.

“If the San Fran Fed’s research report on CPI rents is anywhere near the ballpark, headline inflation in a year will melt to 0.5% and to 1.4% for the core. Bill Ackman is destined to be as offside on Treasuries as he was on Herbalife!” said Rosenberg, in a post on X.

See Also: Hedge Fund Guru Bill Ackman Bets Against US Treasuries, Expects 30-Year Yields To Surge To 5.5%

In 2012, Ackman placed a failed $1 billion short bet against the dietary supplement company Herbalife, resulting in one of his most significant losses.

The Federal Reserve Bank of San Francisco’s recent report indicated a considerable slowdown in house prices and asking rents in 2023. This could potentially ease inflationary pressure from the housing markets, thereby allowing the Federal Reserve to end its rate hiking cycle.

However, Ackman, CEO of Pershing Square, maintains his stance on high inflation, citing high defence costs and increased worker bargaining power as potential inflation drivers.

Read Next: US Treasury’s Trillion-Dollar Problem: Could Rising Yields, Bond Flood Signal Stock Market Storm?

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