Elon Musk, CEO of Tesla and Twitter, has called on the Federal Reserve to cut interest rates to prevent a potential major recession as the US economy faces the possibility of a severe recession.
In reply to a tweet that said a real economic recession is coming in 2023, Musk agreed that the current economic trend is concerning.
Trend is concerning. Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession.
— Elon Musk (@elonmusk) November 30, 2022
The discussion was soon joined by other commentators, including Sven Henrich, the founder and lead market strategist of NorthmanTrader.
Ironically 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.— Sven Henrich (@NorthmanTrader) November 30, 2022
“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,” the businessman added.
While most of the social media platform’s users who contributed to the thread seemed to agree with the entrepreneur’s view on the economic outlook for the U.S., some commentators voiced their disagreement.
“The Fed’s job is not to protect portfolio of millionaires and billionaires. It’s to support working families affording food and shelter. The Fed has a $9T balance sheet and there are 11M open jobs and working g families are experiencing real pain with inflation.Stop being selfish,” tweeted user PatsNuggets.