Tesla and Twitter boss Elon Musk has called on the US Federal Reserve to lower the key interest rate as soon as possible to avoid a severe recession. He added that the regulator’s latest attempts to bring inflation down could make the situation worse.
The critical remarks, posted to Musk’s Twitter account on Wednesday, came during an exchange with co-founder of the Tesmanian (Tesla Accessories and News) portal, Vincent Yu, in which several other executives participated.
“The trend is worrying. The Fed must immediately lower its interest rates. They massively amplify the likelihood of a severe recession,” Musk posted.
The tweet was reposted by Yu, who said it was “expecting a true economic recession in 2023…be prepared for any macro storms ahead.”
The Fed “They’ve been too quiet for too long totally misinterpreting inflation and now they’ve aggressively tightened into building the highest debt ever without considering the lag effects of those hikes. rate, risking that they are again late to realize the damage caused”, NorthmanTrader founder Sven Henrich posted later in the thread.
The Fed had already taken several drastic measures to combat the highest US inflation in more than four decades. So far this year, the regulator has raised its benchmark rate half a dozen times, bringing the overnight borrowing rate to a target range of between 3.75% and 4%. The regulator is expected to maintain its hawkish stance and raise the rate several times before stopping.
The world’s richest man warned of an impending economic downfall last month. In a similar exchange on Oct. 24, Musk said a global recession could last. “until spring ’24,” noting however that it was “just guessing.”
For more stories on economics and finance, visit RT’s business section
You can share this story on social media: