Rude Awakening Inbound! Elon Musk Says A Recession Is 'Actually A Good Thing'

Recession fears have been growing in the U.S. as the Federal Reserve has tightened its monetary policy. 

Tesla Inc TSLA CEO Elon Musk says the U.S. economy is already in a recession, and it could be "tough going" for 12 to 18 months.  

In a recent Twitter post, a user asked Musk if he still thinks the U.S. is heading for a recession. 

Musk replied that a recession is a necessary part of the economic cycle, also mentioning the impact of the work-from-home culture during the COVID pandemic.  

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Another Twitter user asked how long the recession would last, Musk responded that historically a downturn lasts for at least a year.  

Greg Daco, the chief economist at EY-Parthenon, has warned that the odds of an economic downturn in the U.S. over the next year are somewhere between 35% and 40%. 

"A U.S. recession is unlikely in the near term, but there are several uncertainties on the horizon," Daco wrote.

Photo: Created with an image from Ministerio Das Comanicacoes on Flickr