Scharf gave this warning during an interview on CNBC. It follows the Fed's announcement that it will try to rein in out-of-control inflation with more rate hikes. Fed Chair Jerome Powell claimed this is the only way to make sure inflation does not take hold of and cripple the United States economy.

"The risk is that because of the multiplicity of shocks you start to transition to a higher inflation regime. Our job is literally to prevent that from happening, and we will prevent that from happening," claimed the central bank chief. "We will not allow a transition from a low-inflation environment into a high-inflation environment."

These comments were made following the Fed's latest rate hike of 75 basis points (0.75 percent) in June, the highest interest rate increase since 1994.

"I wouldn't bet on a number, but I would bet on more significant rate hikes," said Scharf during his interview on CNBC, believing that the next rate increase will be between 50 to 75 basis points (0.5 to 0.75 percent), which he said would be "significant themselves." (Related: Fed chair admits US dollar's international standing could collapse.)