Tesla boss Elon Musk believes the Fed’s efforts to curb inflation could inadvertently prompt a full-blown recession.
Elon Musk believes the Federal Reserve must cut interest rates immediately or risk a severe recession. outspoken Tesla The CEO soon made his opinion known Tweet Wednesday, which read:
“The trend is concerning. The Fed should cut interest rates immediately. They are massively increasing the likelihood of a severe recession.”
According to Musk, the Fed’s attempt to curb rising inflation could make the economic situation worse. As it stands, prices have skyrocketed, and many homes across America are feeling the shortfall. Energy prices are hovering at record-high levels, and the tech space and crypto industry are drowning in significant devaluation.
Musk has previously warned of an impending recession. On October 24, Dabangg Billionaire Estimated A global recession could last until the spring of 2024. Although Musk acknowledged he was “just speculating”, his prediction came amid gloomy economic forecasts from many business leaders. some of these leaders were Amazon CEO jeff bezos, J. P. Morgan CEO Jamie Dimon, And Goldman Sachs CEO David Solomon.
Latest Elon Musk recession warning sparks Twitter debate
Elon Musk’s latest comments on a possible recession come in an exchange with Tasmanian co-founder Vincent Yu. Like Musk, the Tasmanian co-founder did before expressed concern about the health of the economy and warned of a recession next year. The Twitter exchange between Musk and Yu drew participation from several other users, who also echoed it. While some seemed to favor the Fed’s position on interest rates, others balked at raising rates to reduce inflation. In addition, a small number of Twitter users expressed ambivalence over the Fed’s stance. For example, a user with the handle @CricketSurfing Having said,
“I don’t know where the best is in terms of interest rates, but the goal should be to allow the M2 money supply to grow at the rate of GDP. Right now, the Fed is *squeezing* M2. They put the brakes on Gave, whereas he should have taken off the accelerator.
sven henrich also chimes in
Also notable in the thread on interest rates is input from Sven Henrik, founder of Northman Trader. according to HeinrichFed actions on perceived inflationary pressures were overdue. As a result, the US top bank has sought to delay its decision amid an aggressive tightening of record-high debt creation. However, Heinrich lamented that the Fed is implementing its strategy without “accounting for the cascading effects of these rate hikes.” Northman Trader concluded by speculating that the Fed would realize the extent of the harm of its decision too late.
Like Yu, Heinrich’s assessment of the Fed decision drew a positive feedback From Musk
Heinrich took a further dig at the Fed, saying that the central bank continues to project positive GDP growth for 2023. According to Heinrich, the Fed displayed the same false GDP optimism in 2008 en route to the ’09 economic downturn. Heinrich concluded his criticism of the Fed by saying:
“As usual, they will panic about cutting rates after the effects of a recession and then blame unforeseen factors.”
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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