Cathie Wood Says Fed Rate Increases Raise Risk of Deflation

Cathie Wood, whose investment funds have been hammered this year by the selloff in technology stocks spurred by the Federal Reserve’s interest rate increases, wrote in an open letter that the Fed has raised the risks of a global deflationary bust. She wrote that the Fed is paying attention to lagging indicators, monthly employment and headline inflation readings, while “inventory accumulation seems to be overwhelming manufacturers and retailers.” Ms. Wood pointed to inventories at retailers Walmart and Target increasing 25.5% and 36.1%, respectively, during the most recent quarter. “Could it be that the unprecedented…