Legendary investor Mark Mobius says the Fed will hike interest rates as high as 9% if inflation stays high

Mark Mobius thinks the Federal Reserve could raise interest rates to 9%.

According to the famed investor, the Fed has to raise interest rates higher than inflation to kill inflation.

The central bank could increase benchmark rates by 2% at each meeting to get past the rate of inflation, according to comments made by Mark Mobius on CNBC.

On the heels of the consumer price index reading, the Dow Jones Industrial Average suffered its worst decline in two years. Headline inflation was 8.3% in July, after climbing to 9.1% in the previous year.

He said that the central bank is ignoring cryptocurrencies at its peril.

The policy-making level is not paying attention to the results of the cryptocurrencies.

Digital assets are having a wealth effect on a lot of people. He believes that there will be a major indicator of where markets are going in the future.