Many financial market participants believe the Federal Reserve has gone way overboard in its massive easing program.
Michael Aronstein, manager of MainStay Marketfield Fund, is one of them.
"The Fed has basically said, 'Steady as she goes' with the most radical expansive monetary experiment in the history of central banking," Aronstein said at the Morningstar Investment Conference in Chicago,
CNBC reported.
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"Once again, our premise is that the Fed is wrong, that they could be a couple of years too late to making the decision" to reverse their accommodation, he argued.
"When they were too tight for all of 2006, 2007 and 2008, the nature was an inflationary credit event. Now that they are too loose for five years, the nature is too much strength and too much price distortion for the economy."
The central bank's federal funds rate target has stood at a record low of zero to 0.25 percent since December 2008. Most economists don't expect the Fed to raise rates before the second half of next year.
And Fed officials have indicated they're in no rush to significantly shrink the central bank's $4.3 trillion balance sheet.
"Right now we have to think the economy is accelerating, the risks of inflation are increasing," Aronstein explained.
"We still believe that the economy as we sit here is getting a lot better than is being directed by the central banks with the general population of people allocating assets. That's much better news on the equity side than it is for other assets."
Rick Rieder, chief investment officer of fixed income at BlackRock, agrees with that view of the economy and inflation. But he also thinks that will lead to action from the Fed.
"Our view is that the data will give them [the Fed] a window to do it [lift interest rates] sooner than people think,"
Rieder told The Wall Street Journal. He says the Fed may boost rates as early as the first quarter of next year.
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