Although we've been in a recession for a while, we aren't allowed to mention it because the Democrats are in charge. And it looks like the recession may only get worse according to Elon Musk.
The tech mogul issued a warning of a "severe recession" if the Federal Reserve doesn't take action.
Elon Musk warned that a significant recession would occur in the United States if policymakers at the Federal Reserve do not adjust their current approach to interest rates.
The central bank has increased target federal funds rates by 0.75% on four consecutive occasions, marking the most aggressive rollback of loose monetary policy in decades. Interest rates across the economy, such as mortgage rates and the premiums faced by businesses and consumers to borrow money, have quickly risen as a result.
Vincent Yu, the founder of Tesla accessories provider Tesmanian, predicted a "real economic recession" next year, leading Musk to call the present direction of the economy "concerning." He added that the Federal Reserve is "massively amplifying the probability of a severe recession" and "needs to cut interest rates immediately."
According to Musk, the Federal Reserve is setting us up for failure by refusing to cut interest rates.
Musk isn't alone in worrying about a significant economic downturn.
Some analysts, including Wharton School finance professor Jeremy Siegel, have criticized the central bank amid the return to a contractionary monetary regime, contending that officials who were slow in their response to rising price levels are now causing harm through their excessive zeal to manage inflation. Musk, who said over the summer that he has a "super bad feeling" about the economy, commented on social media that Siegel is "obviously correct."
In an attempt to stimulate the economy, policymakers at the Federal Reserve had pegged a 0% target interest rate and began acquiring government bonds from the marketplace immediately following the onset of the lockdown-induced recession...
Though the labor market has generally remained strong over the past two years, central bankers warned that their actions might increase unemployment. Federal Reserve Chair Jerome Powell vowed that policymakers are committed to returning the economy to a 2% inflation rate, which had been largely maintained over the past three decades.
