In June, the US central bank upped its benchmark interest rate by three-quarters of a percentage point, the largest hike since 1994. This increase followed a quarter-point increase in March and a half-point increase in May. 

In the coming months, further rate hikes are expected. On average, Fed policymakers said they expect interest rates to rise to approximately 3.4% by the end of this year, up from the 1.9% increase projected back in March.

Speaking to CNBC, Scharf said that while the consumer and small businesses have remained strong, the impact of rising rates has not been properly taken into consideration with regard to the broader economy.

“We know rates are going up, it couldn’t be clearer,” Scharf told CNBC on Wednesday. “We know that consumers and businesses, while strong today, are going to see deterioration, and we’re going to act surprised when it happens.”

“That doesn’t mean the world is coming to an end,” Scharf continued, though added that “we should do our best to recognise that and focus on what the solutions are.”