Elon Musk Warns of Severe Recession — Urges the Fed to Cut Interest Rates Immediately – Economics Bitcoin News

Tesla CEO and Twitter boss Elon Musk has warned of a deep recession in the US.

Elon Musk warns of deep recession

Tesla CEO and Twitter chief Elon Musk warned Wednesday of a deep recession in the US.

In response to Vincent Yu’s tweet that he “expects a full-blown recession in 2023,” Musk said the trend was a concern, and that the Federal Reserve would “immediately cut interest rates.” We need to bring it down,” he said. The billionaire stressed that the Fed “greatly amplifies the likelihood of a deep recession.”

Northmantrader founder and lead market strategist Sven Henrich also joined the discussion. He replied to Musk and Yu: But they did the same thing in 2008. As usual, if the recession hits here, they’ll panic and cut interest rates, then blame the unforeseen factors. In another tweet, Henrich explained:

The Federal Reserve has been too optimistic for too long, has completely misunderstood inflation, and is now aggressively pushing its all-time high debt structure without considering the impact of these delayed rate hikes. It is tightening up and risks again delaying recognition of the damage done.

Musk agreed, tweeting, “Exactly.”

Many agreed with the mask. One of the tweets said, “Musk is actually right about this. Right now inflation is driven primarily by housing and interest rates are so high at this point that investment in housing construction has collapsed, leading to a fundamental It can exacerbate the problem.” Another wrote: Higher rates hurt people. The notion of rate hikes as an inflation hedge has always been a crude one. Some people said the Fed “should be abolished.”

In October, Musk said the recession could last until then. Spring 2024In August, he said he believed inflation had peaked and that we would be in recession through 2020. 18 monthsIn September, Tesla’s boss warned of the risk of a significant rate hike by the Fed. deflation.

Do you agree with Elon Musk on the Fed and a deep recession? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin has been an evangelist since he discovered Bitcoin in 2011. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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