Cathie Wood said that deflation is already underway in the US across industries and will force the Federal Reserve to kick off a big interest-rate cutting cycle.

“The Federal Reserve has overdone it, we’re going to see a lot more deflation going forward,” the head of ARK Investment Management told Bloomberg TV Tuesday. “If we’re right, and they’ve gone way too far, they’ll have to cut fairly significantly.”

She added that the CPI inflation rate could turn negative “at some point next year.” US inflation broadly slowed in October, which markets cheered as a strong indication that the Fed is done raising interest rates.

Wood said that a deflationary trend that began in commodities is now extending out to airline prices and auto prices.

Read more: Cathie Wood Sees Revival of Thematic Investing When Rates Fall

Wood has long expected an era of falling prices, backed by new technologies including artificial intelligence, electric vehicles, robotics, genomic sequencing and blockchain. She has also criticized the Fed, saying its aggressive interest-rate hikes could increase the risks of a deflationary bust.

--With assistance from Romaine Bostick.