Billionaire investor Bill Ackman says the U.S economy will see a massive economic boom in the fall

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Bill Ackman, the billionaire owner of Pershing Square Capital Management is foreseeing a massive boom in the U.S economy.

The billionaire investor who said last year that government should give every American cash at birth so they can retire a millionaire, told CNBC on Monday the economy will see a “massive” boom in the fall despite the new delta variant of the coronavirus.

Ackman based his predictions on trillions of dollars in federal stimulus that have been given out, increase in wages, pent-up savings, and the rise in vaccinations. He said these will lead to a “massive, massive economic boom.”

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The hedge fund billionaire who made $2.6 billion off coronavirus market crash from $27 million he invested in March 2020, also said the Delta variant of the coronavirus won’t slow down economic recovery. While he hopes the variant motivates unvaccinated people to seek the vaccine, he does not see it changing behavior to a great extent.

“I hope what it does is that it motivates anyone who doesn’t get the vaccine to get the vaccine. I don’t think it’s going to change behavior to a great extent,” Ackman said in a interview on CNBC’s “Squawk Box.” “You are going to see a massive, my view, economic boom. … We are going to have an extremely strong economy coming in the fall.”

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Ackman who scrapped his plan on Monday to buy 10% of Universal Music through his SPAC, said inflation will be a “new normal”.

“I think inflation is understated,” he added, citing the booming housing market.

The hedge fund manager believes bond yields will trend much higher in the second half of 2021 as the economy continues to recover from the pandemic-induced recession.

“I think rates are going up. Short rates I think are going to go up a lot faster than people think,” Ackman said. “Coming to the turn of the year … I think we are going to have meaningfully higher yields as people realize the economy is going to make a big recovery.”

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The billionaire investor also said employers will need to raise wages to incentivize workers to return to work, and that will be a “long-term positive” for the economy.

Ackman, 55, is not the only one expressing confidence in the economy and the stock market.

Last month, JPMorgan said the new delta variant of Covid-19 does not pose a risk to the stock market in the US given the level of population immunity.