Elon Musk Says Fed Needs To Cut Interest Rates 'Immediately,' Flashes 'Severe Recession' Warning

Elon Musk Says Fed Needs To Cut Interest Rates 'Immediately,' Flashes 'Severe Recession' Warning

Tesla, Inc. TSLA CEO Elon Musk on Wednesday called upon the Fed to act immediately or risk a recession.

What Happened: The trend is concerning and the Fed needs to ‘cut interest rates immediately,’ Musk tweeted early on Wednesday. He was replying to a tweet by a Tesla influencer and investor, in which he said an economic recession is likely in 2023.

Musk went onto add that the rate hikes are "massively amplifying the probability of a severe recession.

See Also: How To Invest In Startups

In mid-September, Musk called for a 25-basis-point cut in the Fed rates even as the August inflation report that showed a pick in pricing pressure sent the market into a tailspin. He had then concurred with Ark Invest’s Cathie Wood about the risk of deflation.

Why It’s Important: A vibrant labor market and strong consumer spending have kept the economy ticking thus far despite four straight 75-basis-point rate hikes and an inflationary environment.

Most economists have called for the U.S. economy to slip into a recession, at least mildly, in 2023.

Photo: Courtesy of Wikimedia Commons

 

Posted In: Cathie WoodElon MuskInflationJerome PowellRecessionNewsEconomicsFederal Reserve