Billionaire investor Bill Ackman believes inflation has largely been “wrung out of the economy” and predicts global economic conflicts could resolve within six to nine months, while advocating for a temporary pause on China tariffs to protect U.S. businesses.

What Happened: The Pershing Square Capital Management CEO told CNBC that declining energy and food prices signal positive economic trends. “The price of energy is coming down and it’s going to stay down. And I think, you know, obviously very, very good for the economy,” Ackman said.

Recent economic data presents a mixed picture. U.S. Gross Domestic Product unexpectedly contracted 0.3% in the first quarter of 2025—the first decline since mid-2022—while April’s nonfarm payrolls increased by 177,000, surpassing the forecasted 130,000 despite tariff pressures.

Ackman suggested the Federal Reserve could implement “a few rate cuts” later this year, with a small reduction coming “relatively soon” as businesses pause investments amid tariff uncertainties. “First quarter is benefited by some frontloading of purchases and inventive tariffs,” he noted, explaining that many businesses are waiting to see what happens next.

See Also: Palantir Q1 Earnings: Revenue Beat, EPS In Line, Customer Count Up 39%, Company Raises Guidance Citing ‘Surging And Ferocious Growth’

Why It Matters: On China’s trade policy, Ackman recommended a strategic pause. “The right thing to do, in my view, is we pause on China. Let’s give it a little more time. Maybe it’s 180 days,” he said, arguing this would stabilize risks to the U.S. economy while incentivizing China to negotiate better terms as companies shift supply chains elsewhere.

His position contrasts with Warren Buffett‘s sharper criticism of using tariffs as economic weapons. The Berkshire Hathaway Chairman recently warned that punitive tariffs risk provoking international tensions, calling them “a big mistake” without directly mentioning President Donald Trump.

Meanwhile, CNBC’s Jim Cramer remains optimistic about avoiding recession, citing strong employment trends. “It’s difficult to derail an economy that is still creating jobs,” Cramer said, suggesting consumers might adapt to tariff-induced price increases by turning to budget retailers like Costco Wholesale Corp. ( COST ) and Walmart Inc. ( WMT )

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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