Ackman Warns of Accelerated Deposit Outflows After Fed Decision

Pershing Square’s Bill Ackman said he expects an acceleration of deposit outflows from banks after US Treasury Secretary Janet Yellen “walked back” comments about guaranteeing all deposits and the Federal Reserve raised its benchmark rate.

“We have gone from implicit support for depositors to @SecYellen explicit statement today that no guarantee is being considered with rates now being raised to 5%,” Ackman said in a long Twitter post. The 5% rate threshold makes bank deposits “much less attractive,” he wrote.