{"id":18883,"date":"2023-03-18T17:54:08","date_gmt":"2023-03-18T17:54:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/elon-musk-criticizes-federal-reserves-data-latency-and-calls-for-immediate-rate-drop-amidst-banking-chaos-economics-bitcoin-news\/"},"modified":"2023-03-18T17:54:08","modified_gmt":"2023-03-18T17:54:08","slug":"elon-musk-criticizes-federal-reserves-data-latency-and-calls-for-immediate-rate-drop-amidst-banking-chaos-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/elon-musk-criticizes-federal-reserves-data-latency-and-calls-for-immediate-rate-drop-amidst-banking-chaos-economics-bitcoin-news\/","title":{"rendered":"Elon Musk Criticizes Federal Reserve’s Data Latency and Calls for Immediate Rate Drop Amidst Banking Chaos \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Amidst the chaos in the U.S. banking sector, Elon Musk, the CEO of Tesla and owner of Twitter, has been critical of the country\u2019s central bank. Musk insists that the U.S. Federal Reserve is operating with \u201cway too much latency in their data,\u201d and he insists that the central bank needs to drop the federal funds rate \u201cimmediately.\u201d<\/strong><\/p>\n

Musk\u2019s Criticism of the Federal Reserve\u2019s Data Latency; Study Shows 186 U.S. Banks Suffer From Financial Risks<\/h2>\n

In the last week, three major U.S. banks collapsed, First Republic Bank<\/a> was bailed out, and Credit Suisse<\/a> received 50 billion Swiss francs from the Swiss National Bank. Just last week, the U.S. Federal Reserve lent the banks $164.8 billion<\/a> to shore up liquidity. Despite all the bailouts and the expectation of the central bank injecting up to $2 trillion in liquidity<\/a> after the creation<\/a> of the Bank Term Funding Program (BTFP), the banking industry is still not out of the woods. A recently published study<\/a> shows that 186 U.S. banking institutions are suffering from the same risks that caused Silicon Valley Bank\u2019s failure.<\/p>\n

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pic.twitter.com\/AoIYifFivh<\/a><\/p>\n

\u2014 Elon Musk (@elonmusk) March 17, 2023<\/a><\/p>\n<\/blockquote>\n

On Twitter, Elon Musk, the CEO of Tesla, has been critical of the Federal Reserve, with his recent commentary very similar to the statements he made last December. At that time, Musk warned<\/a> that if the central bank raised the benchmark rate in December, the risk of a recession would be greatly amplified. After the Fed raised the rate by 50 basis points<\/a>, Musk reiterated<\/a> his position and said, \u201cAt the risk of being repetitive, these Fed rate increases might go down in history as the most damaging ever.\u201d In the last week, Musk has once again criticized the U.S. central bank in a number of viral tweets.<\/p>\n

After computer scientist and essayist Paul Graham shared an article about banking issues in the U.S. published by the Washington Post, Elon Musk responded<\/a> to Graham\u2019s tweet. \u201cFDIC needs to change to unlimited coverage to stop bank runs and Treasury needs to stop issuing ridiculously high-yield bills, such that it makes no sense to have money in a low-interest-rate bank \u2018savings\u2019 account. Right now,\u201d Musk tweeted. In another tweet about the small handful of U.S. bank collapses, Musk insisted that the U.S. central bank is too slow with its data, saying<\/a>:<\/p>\n

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The Fed is operating with way too much latency in their data. Rates need to drop immediately.<\/p>\n<\/blockquote>\n

Musk\u2019s commentary about the Treasury bonds refers to the long-maturity bills affected by the Fed\u2019s monetary tightening policy. The study about the 186 banks suffering from similar financial issues highlights the fact that 10- to 20-year and 20+ year Treasury bonds have lost roughly 25% to 30% of their market value. \u201cOverall, as is evident, the Fed\u2019s monetary policy tightening caused significant value declines in long-duration assets,\u201d the study explains.<\/p>\n

Musk has continuously called out the Fed\u2019s swift rate-hike campaign. On January 13, 2023, Musk tweeted<\/a> about the Fed and asked what would have happened in 2009 if the Fed had raised rates instead of lowering them. In a follow-up tweet<\/a>, Musk added, \u201cThe higher the rates, the harder the fall.\u201d<\/p>\n

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\nTags in this story
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Bank Bailouts<\/a>, bank collapses<\/a>, bank runs<\/a>, Banking institutions<\/a>, Benchmark Rate<\/a>, Central Bank<\/a>, credit markets<\/a>, data latency<\/a>, economic policy<\/a>, Elon Musk<\/a>, Elon Musk Fed<\/a>, FDIC<\/a>, Federal Reserve<\/a>, financial risks<\/a>, financial stability<\/a>, interest rates<\/a>, investment<\/a>, Liquidity<\/a>, long-duration assets<\/a>, market value<\/a>, Monetary Policy<\/a>, Paul Graham<\/a>, rate-hike campaign<\/a>, recession risk<\/a>, savings accounts<\/a>, Silicon Valley Bank<\/a>, Treasury Bonds<\/a>, Twitter<\/a>, U.S. banking sector<\/a>, Wall Street<\/a>, washington post<\/a>, yield bills<\/a><\/div>\n<\/div>\n

What are your thoughts on Elon Musk\u2019s criticism of the U.S. Federal Reserve\u2019s monetary policy? Do you agree with his stance or do you have a different perspective? Share your insights in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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

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