Deflation is now the ‘greater risk’ because the Fed overtightened, says Cathie Wood

Cathie Wood, chief executive at Ark Invest, said Tuesday that a deflation trend has begun in the U.S., which may compel the Federal Reserve to start cutting its key interest rate. 

“The Fed has overdone it, and the greater risk here is deflation,” Wood told Bloomberg TV on Tuesday. “If we’re right, and they’ve gone way too far, they’ll have to cut fairly significantly,” Wood said. 

Investors…