Interactive Brokers Chairman Thomas Peterffy said on Wednesday that the stock market has a lot to lose in the near future as the Federal Reserve struggles to contain inflation by raising rates. “I’m negative on the market because of the geopolitical situation and I don’t believe the Fed will be able to raise rates as much as they need to to calm inflation,” Peterfi told CNBC’s Bob Pisani in an interview. “That’s why I believe the Fed will top at 4% and inflation will not fall below 5%.” The market veteran said the S&P 500 will fall another 15% from here as rising inflation impacts the outlook for corporate profits. “I think earnings will be weak and the P/E ratio will come down, so I expect the market to be down about 15% from today’s range of 3500, 3600,” Peterfi said. “Analysts are always late to reduce earnings estimates.” The S&P 500 is down more than 13% this year, as the Fed’s aggressive toughening action raised fears of a recession. The benchmark briefly dipped into bear market territory on an intraday basis last month. To reduce inflation to a 40-year high, the Fed implemented two rate hikes totaling 75 basis points, including a 50 basis point increase in May. Some Fed officials have floated the idea of implementing two more 50 basis point increases over the summer and then took a step back in September.