Mark Mobius Warns US Interest Rates Will Hit 9% If Inflation Persists

Fed may need to send rates higher than inflation, Mobius says
Veteran investor warns that commodity prices may turn weaker

Investor Mark Mobius discusses the outlook for China’s economy, tensions between the US and Saudi Arabia over oil, and his call for US interest rates to peak at 9% if inflation keeps rising. He speaks on “Bloomberg Markets.”Source: Bloomberg

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By Vildana Hajric and Guy Johnson

October 17, 2022 at 4:52 PM UTC

Updated on

October 17, 2022 at 5:55 PM UTC

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The Federal Reserve’s fight against inflation has veteran fund manager Mark Mobius warning that interest rates will soar to 9%.

“If inflation is 8%, the playbook says you’ve got to raise rates higher than inflation, which means 9%,” the co-founder of Mobius Capital Partners told Bloomberg TV on Monday. While policy makers may not hike so aggressively should consumer prices soften, the 86-year-old investor said he doesn’t see inflation receding “anytime soon.”