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"If I were a voting member of the FOMC, if I'd been really hawkish a month ago, I think I'd be backing off a little bit right now," Jim O'Neill said.
Instead of trying to make money, the hedge fund manager told CNBC that "the most important thing" investors should do now is to preserve capital.
Policymakers are intent on tackling inflation by any means necessary, prompting investors to punish both stocks and bonds this week.
The Fed has come under fire for its handling of surging inflation in the US, which is at a 40-year high.
Clarida landed in hot water in October for stock trades made just before a key Fed announcement. Updated documents raised more questions last week.