She is betting on deflation or even zero inflation. If she's right, the Fed will indeed have to reverse course, but the market clearly doesn't believe that now.

Coin World News: Cathie Wood stated that despite the U.S. CPI rising to 4.2% in May, she is not overly concerned about inflation, believing that underlying price pressures are about to disappear. She noted at a recent investor conference that many attendees questioned whether sustained price growth would force the Federal Reserve to further tighten monetary policy. Wood believes that inflation could sharply diminish for a variety of reasons beyond just falling oil prices. She also mentioned that although market expectations for a possible 25-basis-point rate hike by the Fed in September have increased, she thinks improvements in productivity are helping to alleviate inflationary pressures. According to her assessment, if the U.S. economy continues to expand while inflation drops to 0%-1% or lower, she expects the Fed to place greater emphasis on supporting economic growth rather than maintaining tight monetary policy.