The Federal Reserve's aggressive rate hike path – an attempt to tamp down the highest inflation in decades – is set to cause damage to the global economy if the central bank keeps going, according to billionaire Barry Sternlicht.

"They are going to cause unbelievable calamities if they keep up their action, and not just here, all over the globe," said the chairman and CEO of Starwood Capital Group on CNBC's "Squawk Box" on Tuesday. Instead, the Fed should move slower and look more closely at economic data, he said.