{"id":15353,"date":"2022-12-11T03:58:56","date_gmt":"2022-12-11T03:58:56","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/recession-will-be-greatly-amplified-if-the-fed-raises-rates-next-week-economics-bitcoin-news\/"},"modified":"2022-12-11T03:58:56","modified_gmt":"2022-12-11T03:58:56","slug":"recession-will-be-greatly-amplified-if-the-fed-raises-rates-next-week-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/recession-will-be-greatly-amplified-if-the-fed-raises-rates-next-week-economics-bitcoin-news\/","title":{"rendered":"Recession Will Be Greatly Amplified if the Fed Raises Rates Next Week \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Billionaire Elon Musk, the CEO of Tesla and Spacex, has warned that the recession will be \u201cgreatly amplified\u201d if the Federal Reserve raises interest rates again next week. He added that things will \u201cprobably start looking better\u201d in the second quarter of 2024.<\/strong><\/p>\n

Tesla CEO Elon Musk on Recession and Fed\u2019s Rate Hikes<\/h2>\n

Tesla CEO and Twitter chief Elon Musk has reiterated his warning about a recession in the U.S. He tweeted Friday that if the Federal Reserve raises interest rates again next week, the \u201crecession will be greatly amplified.\u201d<\/p>\n

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Musk was further asked on Twitter how long he thinks the recession will last. The Tesla boss replied:<\/p>\n

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Just a rough guess, but things probably start looking better in Q2 2024.<\/p>\n<\/blockquote>\n

This was not the first time Musk warned about the consequences of the Fed hiking interest rates. At the end of November, the billionaire said the trend was concerning. He urged<\/a> the Federal Reserve to cut interest rates immediately, stating that the U.S. central bank is \u201cmassively amplifying the probability of a severe recession.\u201d<\/p>\n

He agreed with Ark Invest CEO Cathie Wood that the Fed\u2019s actions could lead to<\/a> a 1929-like Great Depression.<\/p>\n

Federal Reserve Chair Jerome Powell has signaled a 50-basis-point rate hike in December following four consecutive 75-basis-point hikes. \u201cIt makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,\u201d Powell said<\/a>. Fed officials will announce their decision on Wednesday after a two-day Federal Open Market Committee (FOMC) meeting.<\/p>\n

According to gold bug Peter Schiff, \u201cThe risk is not the Fed causing a recession by unnecessarily tightening too much as it thinks a strong economy will prevent inflation from falling.\u201d He explained in a tweet last week: \u201cThe risk is the current recession gets worse, causing the Fed to pivot too soon, as it mistakenly believes inflation will decline.\u201d<\/p>\n

Some people are expecting a mild recession in 2023, including analysts at Citi Group. The impending recession \u201cwon\u2019t be that deep, but it will be meaningful,\u201d said<\/a> David Bailin, chief investment officer and head of Citi Global Wealth Investments. Some, however, expect a severe recession<\/a>, including veteran investor Jim Rogers<\/a>.<\/p>\n

Do you agree with Elon Musk? 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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