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Wilbur Ross: Raising Rates Soon Greater Danger Than Being A Little Bit Too Slow

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Billionaire investor and Chairman and CEO of WL Ross Holding Corp (NASDAQ: WLRHU), Wilbur Ross was on CNBC Thursday to talk about Fed's statement on Wednesday and the volatility in the markets.

Fed Raising Rates Soon A Greater Danger

"Rather than saying she [Janet Yellen] nailed it, I would say she put a thumb tack into it because this is a very gradual shift in policy," Ross said. "And frankly I think it is way too much focused on whether they raise it a little bit in June or they do in September. I think in the overall scheme of things, it really doesn't make that much difference, but I think the greater danger is if they raise it too soon rather than if they are a little bit too slow because I don't see the real inflationary pressures yet coming into the system."

Market Volatility

Ross was asked why he thinks that U.S. risk assets have gone through a correction in the past couple of weeks. He replied, "I think it's a lot of things. One is the overall international situation. You have had a number of elections, a number political things going on. Recently we saw the re-election of Netanyahu in Israel -- that was a real cliff-hanger there. You have a lot of anxiety coming up about the UK -- the poles show the conservatives pretty much in a tie with Labour, so that's are sorts of concern. And then you have these sort of extremist parties and Euro skeptics springing up throughout Europe."

"And you saw the big riot yesterday at what had been intended to be the opening ceremony for the European central banks' new headquarters. There's a lot of agitation going on and I think that's part of it. I think continuing confusion about monetary policy undoubtedly is part of it as well," Ross concluded.

Posted-In: CNBC Wilbur RossFederal Reserve Media

 

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