Fed rate hike has gone up 13 times faster than the one it did in the 80s

Former Federal Reserve Chair Paul Volcker had pushed the Fed funds rate up twofold from 10% to 20% in the 1980s, according to Cathie Wood, founder of ARK Investment Management.

In comparison, Jerome Powell and his team have increased it 13 fold from 0.25% to 3.25% to slay the dragon, Wood said.

Inflation had been going on for 15 months, not 15 years by the time the Fed tackled the current surge. She said it is now keeping at it with a sledgehammer 13 times more powerful than the one Volcker wielded in the 80s.

It has gone from 10% to 16% 6 times, while under Powell it's been a whopping 7.4 times. She tweeted that the Fed seems to have hiked rates another 100 basis points in order to protect its legacy, because risk aversion is pummelling all assets except cash.

The accentuated tightening in yields is not in line with a rising interest rate regime, as it seems to be highlighted by Wood. Bond markets tend to have a bad time when interest rates are rising, but the surge in yields is taking a heavy toll on the fixed income industry.

Commodity prices as measured by Refinitiv's CRB index have dropped 42% since their peak in mid- 2008, 25% since their lower peak in 2011 and 19% since an even lower peak earlier this year, Wood tweeted.

She said that the Federal Reserve'sFederal Reserve's aggressive rate hikes and projections have triggered a bloodbath in global stock and commodity markets.

The Nasdaq index has lost 25% in the last six months.

Wood explained how the dollar's parabolic move has been devastating to the rest of the world and should come back to bite U.S. competitiveness, jobs and economic activity, forcing the Fed to pivot.

She said last week that both Japan and China sold dollars to protect their currency against a parabolic dollar that is causing significant harm to the global economy.

Price Action: The SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500, has lost 23% since the beginning of the year. The biggestETF, which was founded in 1993 and is set to turn 30 January 2023, has assets of over $331 billion. The fund has had an annual return of 9.73% as of the end of August.

Since the beginning of the year, Cathie Woods ARK Innovation ETF ARKK has lost 61%.