The U.S. Federal Reserve risks weak economic growth throughout this year due to its backward-looking, “draconian” rate hikes, warned Wall Street’s best-known tech sector bull.

ARK Invest founder Cathie Wood, who became famous for her prescient bets on disruptive technologies led by companies such as Tesla, argued the Fed must temper its policy given leading economic indicators were flashing red.

These included speculative bets indicating an expectation for rising bankruptcies via securities called credit default swaps (CDS) and a flattening of the yield curve — the premium investors demand for holding benchmark 10-year bonds over short-dated two-year bonds.

“It is ignoring deflationary and dangerous signals,” she posted to Twitter on Sunday, arguing the consumer price index lagged real-time developments. Some economists say setting policy using this type of data is equivalent to driving by looking through the rearview mirror.

“Consumer sentiment is lower today than levels reached during the Global Financial Crisis in 2008-09 and the two recessions in 1980-82, when Fed Chairman [Paul]Volcker was choking 15%-plus inflation with 20% interest rates,” she added.

Volcker is best known for taming double-digit inflation with his hawkish policies during the early 1980s. This came at the cost of losing his job to Alan Greenspan, now famous for backstopping Wall Street’s risky bets through the so-called “Greenspan Put”.

Wood and many of her peers benefited from the legacy of the latter’s accommodative rate policies that inflated asset prices, especially for high-growth stocks favored by ARK Invest.

Subsequent Fed chairs, including Ben Bernanke and Janet Yellen, have all preferred to maintain low rates ever since as inflation remained relatively tepid. Current chair Jay Powell even said in March 2021 that he anticipated rates would not rise “at least until 2024”.

That prediction had a very short shelf life. Instead he began in March of this year with a 25 basis point hike and has since raised them to 1.75% as of last week in an aim to cut off inflation.