‘They’ll chicken out’: Fund legend Rick Rule says the Fed won’t keep hiking rates aggressively to prevent ‘amazing damage.’ Here are 3 spots he likes for your money. The Fed is raising interest rates aggressively in an attempt to tame raging inflation.

But according to legendary investor Rick Rule — former president and CEO of investment fund Sprott U.S. Holdings — things may not go as planned for America’s central bank.

“I think they’ll chicken out,” he told Stansberry Research earlier this month.

“If we had a period of real interest rates it would certainly cure inflation, but it wouldn't cure inflation until it did amazing damage to various balance sheets.”

This isn't the first time Rule has voiced concern about the economy’s ability to handle substantially higher interest rates.

In an interview with MoneyWise earlier this year, he said, “I do not believe that the broad equities market will handle multiple rate hikes.”