Elon Musk: Recession Will Be Greatly Amplified if the Fed Raises Rates Next Week

Billionaire Elon Musk, the CEO of Tesla and Spacex, has warned that the recession volition beryllium “greatly amplified” if the Federal Reserve raises involvement rates again adjacent week. He added that things volition “probably commencement looking better” successful the 2nd 4th of 2024.

Tesla CEO Elon Musk connected Recession and Fed’s Rate Hikes

Tesla CEO and Twitter main Elon Musk has reiterated his informing astir a recession successful the U.S. He tweeted Friday that if the Federal Reserve raises involvement rates again adjacent week, the “recession volition beryllium greatly amplified.”

Musk was further asked connected Twitter however agelong helium thinks the recession volition last. The Tesla brag replied:

Just a unsmooth guess, but things astir apt commencement looking amended successful Q2 2024.

This was not the archetypal clip Musk warned astir the consequences of the Fed hiking involvement rates. At the extremity of November, the billionaire said the inclination was concerning. He urged the Federal Reserve to chopped involvement rates immediately, stating that the U.S. cardinal slope is “massively amplifying the probability of a terrible recession.”

He agreed with Ark Invest CEO Cathie Wood that the Fed’s actions could pb to a 1929-like Great Depression.

Federal Reserve Chair Jerome Powell has signaled a 50-basis-point complaint hike successful December pursuing 4 consecutive 75-basis-point hikes. “It makes consciousness to mean the gait of our complaint increases arsenic we attack the level of restraint that volition beryllium capable to bring ostentation down,” Powell said. Fed officials volition denote their determination connected Wednesday aft a two-day Federal Open Market Committee (FOMC) meeting.

According to golden bug Peter Schiff, “The hazard is not the Fed causing a recession by unnecessarily tightening excessively overmuch arsenic it thinks a beardown system volition forestall ostentation from falling.” He explained successful a tweet past week: “The hazard is the existent recession gets worse, causing the Fed to pivot excessively soon, arsenic it mistakenly believes ostentation volition decline.”

Some radical are expecting a mild recession successful 2023, including analysts astatine Citi Group. The impending recession “won’t beryllium that deep, but it volition beryllium meaningful,” said David Bailin, main concern serviceman and caput of Citi Global Wealth Investments. Some, however, expect a severe recession, including seasoned capitalist Jim Rogers.

Do you hold with Elon Musk? Let america cognize successful the comments conception below.

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