{"id":15007,"date":"2022-12-01T01:08:27","date_gmt":"2022-12-01T01:08:27","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/elon-musk-warns-of-severe-recession-urges-the-fed-to-cut-interest-rates-immediately-economics-bitcoin-news\/"},"modified":"2022-12-01T01:08:27","modified_gmt":"2022-12-01T01:08:27","slug":"elon-musk-warns-of-severe-recession-urges-the-fed-to-cut-interest-rates-immediately-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/elon-musk-warns-of-severe-recession-urges-the-fed-to-cut-interest-rates-immediately-economics-bitcoin-news\/","title":{"rendered":"Elon Musk Warns of Severe Recession \u2014 Urges the Fed to Cut Interest Rates Immediately \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Tesla CEO and Twitter boss Elon Musk has warned of a severe recession in the U.S. The billionaire stressed that the Federal Reserve needs to cut interest rates \u201cimmediately,\u201d emphasizing that the Fed is \u201cmassively amplifying the probability of a severe recession.\u201d<\/strong><\/p>\n

Elon Musk Warns About Severe Recession<\/h2>\n

Tesla CEO and Twitter chief Elon Musk warned about a severe recession in the U.S. on Wednesday.<\/p>\n

Replying to Vincent Yu who tweeted that he is \u201cexpecting a real economic recession in 2023,\u201d Musk said the trend is concerning, emphasizing that the Federal Reserve \u201cneeds to cut interest rates immediately.\u201d The billionaire stressed that the Fed is \u201cmassively amplifying the probability of a severe recession.\u201d<\/p>\n

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Sven Henrich, founder and the lead market strategist for Northmantrader, joined the discussion. He replied to Musk and Yu: \u201cIronically the Fed continues to project positive GDP growth for next year despite all the obvious signs. But they did the same thing in 2008. As always they will panic cut rates once the recession impact is here & then blame unforeseen factors.\u201d In another tweet, Henrich described:<\/p>\n

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The Fed stayed too easy for too long totally misreading inflation and now they\u2019ve tightened aggressively into the highest debt construct ever without accounting for the lag effects of these rate hikes risking they\u2019ll be again late to realize the damage done.<\/p>\n<\/blockquote>\n

Musk concurred, tweeting: \u201cExactly.\u201d<\/p>\n

Many people agreed with Musk. One tweeted: \u201cMusk is actually right about this. Inflation is now primarily being driven by housing, and interest rates are so high at this point they\u2019re crashing investment in home construction, threatening to worsen the underlying problem.\u201d Another wrote: \u201cCorrect. Higher rates hurt people. The notion of rate increases as an inflation hedge has always been sketchy.\u201d Some people said the Fed \u201cshould be abolished.\u201d<\/p>\n

In October, Musk said the recession could last until spring 2024<\/a>. In August, he said that he believes inflation has peaked and we will be in a recession for 18 months<\/a>. In September, the Tesla boss warned that a major Fed rate hike risks deflation<\/a>.<\/p>\n

Do you agree with Elon Musk about the Fed and a severe recession? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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