{"id":227,"date":"2023-01-29T15:01:23","date_gmt":"2023-01-29T20:01:23","guid":{"rendered":"https:\/\/embarrdowns.com\/elon-musk-urges-fed-to-cut-rates-immediately-to-avoid-recession\/"},"modified":"2023-01-29T15:01:24","modified_gmt":"2023-01-29T20:01:24","slug":"elon-musk-urges-fed-to-cut-rates-immediately-to-avoid-recession","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/elon-musk-urges-fed-to-cut-rates-immediately-to-avoid-recession\/","title":{"rendered":"Elon Musk Urges Fed to Cut Rates “Immediately” to Avoid Recession"},"content":{"rendered":"

Tesla Inc CEO Elon Musk has expressed his concerns about the Federal Reserve’s recent interest rate hike, saying it could have a devastating effect on the stock market. In late 2022, Musk urged the central bank to cut rates “immediately” in order to prevent an economic recession.[0]<\/a><\/sup><\/p>\n

The Fed recently announced a 50 basis point rate hike in the last FOMC meeting, bringing the rate up to 4.25%-4.50%, the highest level since 2008.[1]<\/a><\/sup> Analysts anticipate that the central bank will make two additional increases of 25 basis points in February and March, bringing the target rate up to 4.75%-5%. Afterward, the bank is expected to take a break.[0]<\/a><\/sup><\/p>\n

Musk has been vocal about his worries that the Fed’s hawkish rate hike approach could lead to deflation hitting the economy. At Tesla’s fourth quarter earnings call, Musk said that the Fed needs to be “very cautious” about the rate exceeding 6%, as it could lead to investors shifting their money away from the S&P 500 and towards savings accounts.[0]<\/a><\/sup><\/p>\n

“The Fed is at risk of crushing the value of all equities. Quite a serious danger,” Musk warned.[0]<\/a><\/sup> We will have to wait and see if the Fed takes his advice, or if it will continue with its current rate hike strategy.<\/p>\n

0. <\/span>“Elon Musk says he’s worried the Fed will ‘crush’ the stock market” Markets Insider, 27 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/elon-musk-recession-fed-crush-stock-market-interest-rate-hikes-2023-1<\/a><\/a><\/p>\n

1. <\/span>“Janet Yellen, Elon Musk Warns Severe Recession, Will Crypto Crash Again?” CoinGape, 28 Jan. 2023, https:\/\/coingape.com\/janet-yellen-elon-musk-warns-severe-recession-will-crypto-crash-again<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tesla Inc CEO Elon Musk has expressed his concerns about the Federal Reserve’s recent interest rate hike, saying it could have a devastating effect on the stock market. In late 2022, Musk urged the central bank to cut rates “immediately” in order to prevent an economic recession.[0]<\/a><\/sup><\/p>\n

The Fed recently announced a 50 basis point rate hike in the last FOMC meeting, bringing the rate up to 4.25%-4.50%, the highest level since 2008.[1]<\/a><\/sup> Analysts anticipate that the central bank will make two additional increases of 25 basis points in February and March, bringing the target rate up to 4.75%-5%. Afterward, the bank is expected to take a break.[0]<\/a><\/sup><\/p>\n

Musk has been vocal about his worries that the Fed’s hawkish rate hike approach could lead to deflation hitting the economy. At Tesla’s fourth quarter earnings call, Musk said that the Fed needs to be “very cautious” about the rate exceeding 6%, as it could lead to investors shifting their money away from the S&P 500 and towards savings accounts.[0]<\/a><\/sup><\/p>\n

“The Fed is at risk of crushing the value of all equities. Quite a serious danger,” Musk warned.[0]<\/a><\/sup> We will have to wait and see if the Fed takes his advice, or if it will continue with its current rate hike strategy.<\/p>\n

0. <\/span>“Elon Musk says he’s worried the Fed will ‘crush’ the stock market” Markets Insider, 27 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/elon-musk-recession-fed-crush-stock-market-interest-rate-hikes-2023-1<\/a><\/a><\/p>\n

1. <\/span>“Janet Yellen, Elon Musk Warns Severe Recession, Will Crypto Crash Again?” CoinGape, 28 Jan. 2023, https:\/\/coingape.com\/janet-yellen-elon-musk-warns-severe-recession-will-crypto-crash-again<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":226,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/227"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=227"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/226"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}