{"id":1658907,"date":"2022-09-26T17:22:41","date_gmt":"2022-09-26T21:22:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1658907"},"modified":"2022-09-26T17:24:09","modified_gmt":"2022-09-26T21:24:09","slug":"elon-musk-agrees-with-a-furious-jeremy-siegel-that-fed-actions-which-blew-up-the-stock-market-make-absolutely-no-sense","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-agrees-with-a-furious-jeremy-siegel-that-fed-actions-which-blew-up-the-stock-market-make-absolutely-no-sense\/","title":{"rendered":"Elon Musk Agrees With A Furious Jeremy Siegel That Fed Actions Which Blew Up The Stock Market Make \u2018Absolutely No Sense\u2019"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">42<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Felon-musk-agrees-with-a-furious-jeremy-siegel-that-fed-actions-which-blew-up-the-stock-market-make-absolutely-no-sense%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1658907&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>After finance professor Jeremy Siegel passionately argued on Friday that the <a href=\"http:\/\/dailywire.com\/topic\/federal-reserve\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> has neglected to maintain an even hand with monetary policy, Tesla and SpaceX CEO <a href=\"http:\/\/dailywire.com\/topic\/elon-musk\" target=\"_blank\" rel=\"noopener\">Elon Musk<\/a> concurred that the central bank\u2019s policies do not make sense.<\/p>\n<p>Policymakers at the central bank increased the target federal funds <a href=\"https:\/\/www.dailywire.com\/topic\/interest-rates\" target=\"_blank\" rel=\"noopener\">rate<\/a> by 0.75% on Wednesday afternoon, sending the Dow Jones Industrial Average <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-announces-rate-hike-of-0-75\">tumbling<\/a> more than 500 points. After stagnating on Thursday, the index fell another 900 points by early Monday afternoon to reach 29,300.<\/p>\n<p>The Federal Reserve had initially <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-releases-plan-to-more-urgently-address-high-inflation\">pegged<\/a> a near-zero target interest rate and acquired government bonds in order to stimulate the economy during the lockdown-induced recession. During an <a href=\"https:\/\/www.cnbc.com\/video\/2022\/09\/23\/powells-decision-overlooks-monetary-and-financial-indicator-argues-wharton-prof-jeremy-siegel.html\">interview<\/a> with CNBC, the United of Pennsylvania Wharton School professor acknowledged he was \u201cvery upset\u201d and said the Federal Reserve\u2019s sudden hawkishness makes \u201cabsolutely no sense.\u201d<\/p>\n<p>\u201cIt\u2019s like a pendulum. They were way too easy\u2026 through 2020, 2021,\u201d Siegel said, observing that no members of the media were willing to ask Federal Reserve Chair Jerome Powell tough questions during the most recent rate hike announcement. \u201cAnd now\u2026 \u2018We\u2019re going to be real tough guys until we crush the economy\u2019 \u2026 Poor monetary policy would be an understatement.\u201d<\/p>\n<p>The M1 money supply, which includes liquid forms of money such as demand deposits and checking accounts, rose from $4.8 trillion to $16.2 trillion between April 2020 and May 2020 alone, according to <a href=\"https:\/\/fred.stlouisfed.org\/series\/M1SL\">data<\/a> from the Federal Reserve. The metric peaked at $20.7 trillion in March 2022 and has since fallen slightly.<\/p>\n<p>Musk, who <a href=\"https:\/\/www.dailywire.com\/news\/elon-musk-has-a-super-bad-feeling-about-the-economy-wants-a-massive-layoff-at-tesla\">said<\/a> three months ago that he has a \u201csuper bad feeling\u201d about the economy, commented on <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1573624036957065217\">social media<\/a> that Siegel is \u201cobviously correct.\u201d<\/p>\n<p>The rollback of the monetary stimulus occurs as inflation rises at the fastest rate in four decades. Price levels between August 2021 and August 2022 rose 8.3%, according to <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">data<\/a> from the Bureau of Labor Statistics, marking a slight moderation from an 8.5% year-over-year increase in July and a 9.1% year-over-year increase in June.<\/p>\n<p>Central bankers, who also increased interest rate targets by 0.75% in June and July, have indeed pivoted in recent months toward an aggressive tone. \u201cPrice stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy,\u201d Powell asserted at a <a href=\"https:\/\/www.dailywire.com\/news\/jerome-powell-vows-to-restore-price-stability-even-though-federal-reserve-must-first-bring-some-pain\">speech<\/a> last month. \u201cWithout price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all.\u201d<\/p>\n<p>During a separate CNBC <a href=\"https:\/\/www.cnbc.com\/2022\/09\/26\/whartons-siegel-says-jerome-powell-owes-the-american-people-an-apology-for-poor-fed-policy.html\">interview<\/a>, Siegel argued that Powell \u201cshould offer the American people an apology\u201d for the \u201cpoor monetary policy\u201d which marked the past few years. \u201cIt seems to me wrong for Powell to say we\u2019re going to crush wage increases, we\u2019re going to crush the worker, when that is not the cause of the inflation,\u201d he said. \u201cThe cause of the inflation was excessive monetary accommodation.\u201d<\/p>\n<p>A relative bright spot in an otherwise bleak economic landscape has been the labor market, which is maintaining unemployment rates well below historic norms. Yet <a href=\"https:\/\/www.dailywire.com\/news\/unemployment-rate-edges-upward-for-the-first-time-in-months-as-more-americans-return-to-work\">joblessness rose<\/a> last month to 3.7% even as more Americans returned to work, according to a <a href=\"https:\/\/www.bls.gov\/news.release\/empsit.nr0.htm\">release<\/a> from the Bureau of Labor Statistics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After finance professor Jeremy Siegel passionately argued on Friday that the Federal Reserve has neglected to maintain an even hand with monetary policy, Tesla and SpaceX CEO Elon Musk concurred that the central bank\u2019s policies do not make sense. Policymakers at the central bank increased the target federal funds rate by 0.75% on Wednesday afternoon, &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1658910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1658907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1658907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1658907"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1658907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1658910"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1658907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1658907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1658907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}