Tesla, Inc. TSLA CEO Elon Musk on Wednesday called upon the Fed to act immediately or risk a recession.
What Happened: The trend is concerning and the Fed needs to cut interest rates immediately, Musk tweeted early on Wednesday. He was replying to a tweet by a Tesla influencer and investor, in which he said an economic recession is likely in 2023.
Musk went onto add that the rate hikes are "massively amplifying the probability of a severe recession. Elon Musk (@elonmusk) November 30, 2022
See Also: How To Invest In Startups
In mid-September, Musk called for a 25-basis-point cut in the Fed rates even as the August inflation report that showed a pick in pricing pressure sent the market into a tailspin. He had then concurred with Ark Invests Cathie Wood about the risk of deflation.
Why Its Important: A vibrant labor market and strong consumer spending have kept the economy ticking thus far despite four straight 75-basis-point rate hikes and an inflationary environment.
Most economists have called for the U.S. economy to slip into a recession, at least mildly, in 2023.
Photo: Courtesy of Wikimedia Commons