Starwood Capital’s CEO Barry Sternlicht thinks the Fed created the banking crisis by itself, and that its interest rate hikes will hurt the economy. “Obviously he [Fed Chair Jerome Powell] didn’t need to do what he did,” he told CNBC’s Squawk Box on Thursday about the latest interest rate increase this week, the ninth since 2022.Sternlicht, whose hedge fund manages over $100 billion, said that Powell’s argument that the economy will not slow down due to the current banking crisis was flawed.