Tesla CEO and Twitter chief Elon Musk says the Federal Reserve’s recent rate hikes “might go down in history as the most damaging ever.” The rich person has urged the Fed to cut interest rates directly, saying that the U.S. central bank is “massively amplifying the chance of a severe recession.”
Elon Musk on Fed Rate Hikes
Tesla, Spacex, and Twitter boss Elon Musk warned Thursday concerning the damaging impact of the central bank apace raising interest rates.
His warning was back to a tweet by former investment manager Genevieve Roch-Decter stating that “the Fed has ne’er raised rates faster” than this year. Musk wrote:
At the chance of being repetitive, these Fed rate will increase may go down in history as most damaging ever.
Roch-Decter conjointly enclosed a chart together with her tweet showing that the Fed has hiked interest rates additional and quicker this year than at the other time in trendy history.
Many people in agreement with Musk. “I agree, Elon. The mortgage business is taking a blood bathtub. sensible professionals like Pine Tree State (marketing) set off. Applications at historic lows. this can be a disaster,” one Twitter user wrote. Another described: “This is what happens once the govt by artificial means infuses $3.5 trillion into the U.S. economy. The Fed makes up for it in damaging interest hikes … It’s reaching to intensify.”
Musk conjointly darned the central bank for Tesla’s loss of market price. investment adviser Ross Gerber tweeted last week: “Elon has currently erased $600 billion of Tesla wealth and still nothing from the Tesla flesh [board of directors]. It’s whole unacceptable.” Musk replied:
Tesla is capital punishment higher than ever. we tend to don’t management the central bank. that’s the important downside here.
The rich person has warned many times concerning the risks of the central bank hiking interest rates. Earlier this month, he cautioned that the recession are going to be greatly amplified if the Fed raised interest rates once more. The central bank then raised rates by 5 basis points following 4 consecutive 75-basis-point hikes.
Last month, Musk warned that the “trend is regarding,” action that the Fed “needs to cut interest rates directly.” He added: “They are massively amplifying the chance of a severe recession.” The rich person conjointly antecedently same that he believes the recession can last till the spring of 2024.
