Elon Musk believes that we are about to fall into a recession and is concerned that the Federal Reserve’s attempts to reduce inflation could make the situation even worse.
In a published tweet On Wednesday morning, the CEO of Tesla and the owner of Twitter called on the Federal Reserve to cut interest rates immediately or risk amplifying the likelihood of a severe recession.
These comments were made in a tweet exchange Musk had with Tesmanian co-founder Vincent Yu. Yu’s company sells parts for Tesla vehicles.
In the same tweet thread, Sven Henrich, the founder of NorthmanTrader, a market research firm, said: “The Federal Reserve stayed too easy misreading inflation for far too long, and has now aggressively adjusted into the highest debt build in history without accounting for the lagging effects of these rate increases, risking realizing the damage done too late.”
To that comment, Musk responded: “Exactly.”
Musk has previously made other comments about the dangers looming in the US economy, according to information from CNBC.
In a similar series of tweets published on 40 of October, the richest man in the world estimated that a global recession could last until the spring of
That prediction was made at the same time as others business executives issued a series of economic warnings. They included Amazon CEO Jeff Bezos, JPMorgan CEO Jamie Dimon and Goldman Sachs CEO David Solomon.
Currently, it looks like the Federal Reserve will stop making big hikes of rates in order to curb inflation, which is still close to its highest level in more than 40 years.
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