Elon Musk, CEO of Twitter, said that the following US Federal Reserve price hike will exacerbate the recession. In a Twitter trade, the world’s richest man and mercurial electrical automotive govt mentioned,
If the Fed raises charges once more subsequent week, the recession will probably be drastically amplified
— Elon Musk (@elonmusk) December 9, 2022
Michael Saylor responded to Elon Musk’s put up after a while,
The Fed is piloting your entire world financial system. Monetary coverage (US01Y) for the previous 5 years appears to be like just like the Suicide Mission from Top Gun 2. We (1) coast into the pandemic (2) crash the foreign money (3) decouple from actuality (4) nearly rip the wings off (5) hope we do not blackout. pic.twitter.com/2uAFD6BUI4
— Michael Saylor⚡️ (@saylor) December 9, 2022
Elon Musk predicted a recession
Earlier this yr, in October, Elon Musk predicted that the recession would final “until the spring of 24.” In October, the Twitter account Tesla Owners Silicon Valley requested Elon Musk how lengthy he thought the recession would final, and he replied, “Just guessing, but probably until spring of 24.”
According to economists, the Federal Reserve will possible announce the ultimate hike of 2022 within the coming week. Fed Chair Jerome Powell additionally hinted that the central financial institution’s benchmark rate of interest will probably be raised by a smaller increment when it meets subsequent week. However, whether or not the speed hike is 0.5 or 0.75 proportion factors is doubtful. The US Federal Reserve’s rates of interest will probably be introduced on December 14.
The Federal Reserve final month introduced a fourth consecutive 0.75 proportion level price hike in November in an effort to tame inflation.
Economists view on recession
Many economists imagine {that a} recession is extra possible in 2023 on account of continued price will increase discouraging borrowing. 42 economists responding to a Bloomberg survey estimate that the chance of a recession over the upcoming yr has elevated to 60%.
Between October and November, the price of items elevated simply 0.1%, whereas wholesale fuel costs fell by 6%. (Food costs had been an exception; they rises 3.3% final month on account of higher-priced rooster, eggs, and greens.)
In distinction, the price of providers rises extra, by 0.4%, primarily on account of greater monetary service costs. The client value index, the US authorities’s most generally identified inflation indicator, will probably be launched. Prices had been up 7.7% from a yr in the past in the latest CPI report for October, which confirmed a moderating of inflation. That was the bottom comparability determine since January, even supposing it was nonetheless excessive.
Also Read: Elon Musk Announces Twitter Update; How It Will Affect Users
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