Tesla CEO and Twitter boss Elon Musk The billionaire stressed that the Federal Reserve needed to cut interest rates “immediately” and that the Fed was “significantly amplifying the likelihood of a deep recession.”
Elon Musk warns of deep recession
Tesla CEO and he’s Twitter chief Elon Musk warns of deep US recession on Wednesday Did.
Responding to Vincent Yu’s tweet that he “expects a full-blown recession in 2023,” Musk said the trend was cause for concern, saying that the Federal Reserve “We need to lower interest rates immediately,” he said. The billionaire stressed that the Fed “greatly amplifies the likelihood of a deep recession.”
Northmantrader founder and lead his market strategist Sven Henrich joined the discussion. He replied to Musk and Yu: But they said he did the same in 2008. As usual, if the recession hits here, they will panic for rate cuts&and then blame unforeseen factors. Henrich explained in another tweet:
The Fed has been in the easy stance for too long, completely misreading inflation and now these Aggressively tightening the debt structure to a record high without considering the lag effect of rate hikes. Again they run the risk of being late in realizing the damage done.
Musk agreed, tweeting, “Exactly.”
Many agreed with the masks. One of the tweets said, “Musk is actually right about this. Inflation is now largely driven by housing and interest rates are so high at the moment that investment in housing construction collapses and the underlying problem It can make things worse.” wrote another. Higher rates hurt people. The notion of rate hikes as an inflation hedge has always been a crude one. Some said the Fed “should be abolished.”
In October, Musk said the recession could last until spring 2024. In September, Tesla’s boss warned that a big Fed rate hike would risk deflation.
Image Credits: Shutterstock, Pixabay, Wiki Commons