Elon Musk

Elon Musk: Feds raising interest rates would again happen too slow

Unusual Whales

May 17, 2023 • 1 min read

Per CNBC

Elon Musk has recently commented on the Feds in an interview with David Faber from CNBC. In their discussion, he shared how he believed they'd be too slow to lower rates.

Musk said that this was because they were also slow to increase rates when needed, and because of this, they would also be too slow to lower them. In the interview, the billionaire said the Feds operated with "too much latency."

Musk: “My concern with the way the Federal Reserve is making decisions is they’re operating with too much latency... The data is somewhat stale. The Federal Reserve was slow to raise interest rates, and they’re gonna be slow to lower them.”

The billionaire then commented on the effect this could have not just for Tesla, but for other companies as well. He commented on how from a macroeconomic perspective, consumers' budgets would be pinched by the increased interest rates, which could lead them to spend less.

Musk then gave a statement regarding the effect it could have on things.

Musk: “You can think of raising the Fed rate as somewhat of a brake pedal on the economy, frankly... It makes a lot of things more expensive. So if the car payment or your home mortgage is absorbing more of your monthly budget then you have less money to buy other things.”

Toward the end of January, Elon Musk previously commented on how the Fed could "crush the value of the entire stock market." He then said that the Feds should tread carefully, especially when it came to having a rate exceeding 6%.

In December, Elon Musk previously said that the Fed was "amplifying the probability of a severe recession." During that time, he then urged them to cut interest rates immediately.

This was in response to a tweet expecting to bring a "real economic recession."

See flow at unusualwhales.com/flow.

Other News:

Resources:

CNBC

Sign up for more like this.