Perhaps this shouldn’t come as a surprise, but Tesla Inc. CEO
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and Twitter Inc. owner Elon Musk isn’t a fan of the Federal Reserve’s most aggressive interest-rate hikes since at least the 1980s. In a reply to a tweet about the concerning outlook for the U.S. economy next year, Musk said the “Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession.”
Musk’s tweet inspired a long string of replies, including one from Sven Henrich, the founder and lead market strategist of NorthmanTrader.com: “The Fed stayed too easy for too long totally misreading inflation and now they’ve tightened aggressively into the highest debt construct ever without accounting for the lag effects of these rate hikes risking they’ll be again late to realize the damage done.”
Musk appeared to appreciate Henrich’s response because the world’s richest man replied with one word: “exactly.”
This isn’t the first time Musk has warned about looming economic upheaval. Last month, he said he expected a recession would last “until the spring of ’24.”
Musk’s tweet comes just hours before Federal Reserve Chairman Jerome Powell is set to speak at the Brookings Institution. It will be the last time investors are due to hear from Powell until the Fed’s next post-meeting press conference after the close of the December policy meeting.
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