If the Federal Reserve doesn't slow down when it comes to raising interest rates, the U.S. could be in bad shape, Barry Sternlicht, the top executive of America's largest apartment owner, told CNBC.
During an appearance in advance of this week's monthly Fed meeting, Sternlicht said the central bank is being too aggressive as it uses interest rate increases to fight inflation. He is chairman and CEO of Starwood Capital Group, a firm that owns about 130,000 apartments and ranks No. 1 on the National Multifamily Housing Council's ownership list.
"They’re attacking the economy with a sledgehammer, and they don’t need to," he said Friday on CNBC's "Squawk Box" show.
Sternlicht, who said an inflation rate of 3% to 4% is OK, added that the Fed's previous rate increases this year are having a major effect already. The consumer price index, or CPI, was 8.3% in August, according to the U.S. government.
Sternlicht said the rate of increases in apartment rents, part of CPI, is slowing. Miami Beach, Florida-based Starwood Capital has seen year-over-year rent increases of 20% across the country, he said.
"The pace of rent increases, we’re seeing it go down in month to month, not year over year. ... You’re going to see the rent component of CPI continue to rise because it’s such old data they have. But [if] they call us, or they call CoStar, or they call anyone on real estate, you can get the real-time data where it is rolling over." CoStar Group is the owner of CoStar News.