Recession Will Magnify Largely If Fed Raise Rates Next Week – Bitcoin Economic News

Billionaire Elon Musk, CEO of Tesla and Spacex, has warned that the recession will be “significantly swelled” if the Federal Reserve raises interest rates again next week. He added that things will “probably start to look better” in the second quarter of 2024.

Tesla CEO Elon Musk talks about recession and raising Fed rates

Tesla CEO and Twitter chief Elon Musk has repeated his warning about a recession in the United States. He tweeted on Friday that if the Federal Reserve raises interest rates again next week, “the recession will be greatly inflated.”

Musk was asked on Twitter how long he thinks the recession will last. The Tesla CEO replied:

Just a rough guess, but things will probably start to look better in the second quarter of 2024.

This isn’t the first time Musk has warned of the consequences of the Fed’s interest rate hike. At the end of November, the billionaire said the trend was worrying. he is urge The Federal Reserve immediately cuts interest rates, stating that the US central bank is “dramatically inflating the possibility of a severe recession.”

He agreed with Cathy Wood, CEO of Ark Invest, on the Fed’s actions It can lead to Great Depression similar to 1929.

Federal Reserve Chairman Jerome Powell signaled a 50bp rate hike in December after four consecutive hikes of 75bp. “It makes sense to moderate the pace of our price increases as we approach a level of restraint that will be sufficient to bring down inflation.” He said. Fed officials will announce their decision on Wednesday after a two-day meeting of the Federal Open Market Committee (FOMC).

According to gold miner Peter Schiff, “The risk is not that the Fed will cause a recession by unnecessarily tightening too much because it believes a strong economy will prevent inflation from falling.” “The risk is that the current recession gets worse, causing the Fed to pivot too soon, because it mistakenly believes inflation will fall,” he explained in a tweet last week.

Some people expect a mild recession in 2023, including analysts at Citi Group. The impending recession “won’t be that deep, but it will be meaningful,” He said David Belin, Chief Investment Officer and President, Citi Global Wealth Investments. However, some expect A severe recessionincluding the veteran investor Jim Rogers.

Do you agree with Elon Musk? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, 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.