{"id":1756869,"date":"2022-11-30T11:17:58","date_gmt":"2022-11-30T16:17:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1756869"},"modified":"2022-11-30T12:07:24","modified_gmt":"2022-11-30T17:07:24","slug":"elon-musk-warns-a-severe-recession-will-be-more-likely-if-federal-reserve-doesnt-take-action-on-rate-hikes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-warns-a-severe-recession-will-be-more-likely-if-federal-reserve-doesnt-take-action-on-rate-hikes\/","title":{"rendered":"Elon Musk Warns A \u2018Severe Recession\u2019 Will Be More Likely If Federal Reserve Doesn\u2019t Take Action On Rate Hikes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">38<\/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-warns-a-severe-recession-will-be-more-likely-if-federal-reserve-doesnt-take-action-on-rate-hikes%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=1756869&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><a href=\"http:\/\/dailywire.com\/topic\/elon-musk\" target=\"_blank\" rel=\"noopener\">Elon Musk<\/a> warned that a significant <a href=\"http:\/\/dailywire.com\/topic\/recession\" target=\"_blank\" rel=\"noopener\">recession<\/a> would occur in the United States if policymakers at the <a href=\"http:\/\/dailywire.com\/topic\/federal-reserve\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> do not adjust their current approach to interest rates.<\/p>\n<p>The central bank has <a href=\"https:\/\/www.dailywire.com\/news\/what-the-federal-reserves-changing-approach-toward-rate-hikes-could-mean-for-the-economy\" target=\"_blank\" rel=\"noopener\">increased<\/a> 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.<\/p>\n<p>Vincent Yu, the founder of Tesla accessories provider Tesmanian, predicted a \u201creal economic recession\u201d next year, leading Musk to <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1597878869910253569\" target=\"_blank\" rel=\"noopener\">call<\/a> the present direction of the economy \u201cconcerning.\u201d He added that the Federal Reserve is \u201cmassively amplifying the probability of a severe recession\u201d and \u201cneeds to cut interest rates immediately.\u201d<\/p>\n<p>Some analysts, including Wharton School finance professor Jeremy Siegel, have <a href=\"https:\/\/www.dailywire.com\/news\/elon-musk-agrees-with-a-furious-jeremy-siegel-that-fed-actions-which-blew-up-the-stock-market-make-absolutely-no-sense\" target=\"_blank\" rel=\"noopener\">criticized<\/a> 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 <a href=\"https:\/\/www.dailywire.com\/news\/elon-musk-has-a-super-bad-feeling-about-the-economy-wants-a-massive-layoff-at-tesla\" target=\"_blank\" rel=\"noopener\">said<\/a> over the summer that he has a \u201csuper bad feeling\u201d about the economy, <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1573624036957065217\" target=\"_blank\" rel=\"noopener\">commented<\/a> on social media that Siegel is \u201cobviously correct.\u201d<\/p>\n<p>In an attempt to stimulate the economy, policymakers at the Federal Reserve had <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-releases-plan-to-more-urgently-address-high-inflation\" target=\"_blank\" rel=\"noopener\">pegged<\/a> a 0% target interest rate and began acquiring government bonds from the marketplace immediately following the onset of the lockdown-induced recession.<\/p>\n<p>The stock market generally dislikes rate hike decisions because of their negative implications for future economic activity. However, investors <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-hikes-interest-rates-three-quarters-of-a-point\" target=\"_blank\" rel=\"noopener\">reacted positively<\/a> in the immediate aftermath of the most recent announcement since a statement from the Federal Reserve Board of Governors affirmed that officials \u201cwill take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.\u201d The new language had not been included in previous releases.<\/p>\n<p>Musk, who serves as the chief executive of SpaceX, Tesla, and Twitter, also <a href=\"https:\/\/www.dailywire.com\/news\/elon-musk-predicts-how-long-global-recession-will-last\" target=\"_blank\" rel=\"noopener\">predicted<\/a> that a global recession could last through 2024. He remarked that the former two companies are in \u201cgood positions\u201d to weather the economic headwinds.<\/p>\n<p>In an <a href=\"https:\/\/www.dailywire.com\/news\/elon-musk-makes-bold-predictions-about-tesla-performance-global-recession-twitter-deal\" target=\"_blank\" rel=\"noopener\">earnings call<\/a> for Tesla last month, the world\u2019s richest man said that China is experiencing \u201ca recession of sorts\u201d while Europe is likewise seeing \u201ca recession of sorts driven by energy.\u201d He believes that North America is in \u201cpretty good health\u201d and forecasted that the Federal Reserve would eventually pivot toward a more moderate approach to inflation.<\/p>\n<p>Twitter was among several technology firms that recently eliminated a significant portion of staffers. Musk <a href=\"https:\/\/www.dailywire.com\/news\/read-it-elon-musk-tells-twitter-staff-to-work-long-hours-at-high-intensity-or-hit-the-road\" target=\"_blank\" rel=\"noopener\">told<\/a> remaining employees that they must be prepared to work \u201clong hours at high intensity\u201d to keep their positions and will \u201cbe much more engineering-driven.\u201d Some investors have <a href=\"https:\/\/www.dailywire.com\/news\/meta-shares-fall-to-lowest-level-since-2016-as-company-burns-billions-on-metaverse-inflates-payrolls\" target=\"_blank\" rel=\"noopener\">voiced criticism<\/a> of Silicon Valley for ballooning headcounts, arguing that the current macroeconomic climate presents an opportunity to reduce costs by reconfiguring staff.<\/p>\n<p>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 <a href=\"https:\/\/www.dailywire.com\/news\/jerome-powell-vows-to-restore-price-stability-even-though-federal-reserve-must-first-bring-some-pain\" target=\"_blank\" rel=\"noopener\">vowed<\/a> that policymakers are committed to returning the economy to a 2% inflation rate, which had been largely maintained over the past three decades.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1890624,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Elon Musk Warns A \u2018Severe Recession\u2019 Will Be More Likely If Federal Reserve Doesn\u2019t Take Action On Rate Hikes","footnotes":""},"categories":[541],"tags":[],"class_list":["post-1756869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Elon Musk Warns A \u2018Severe Recession\u2019 Will Be More Likely If Federal Reserve Doesn\u2019t Take Action On Rate Hikes","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1756869","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\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1756869"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1756869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1890624"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1756869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1756869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1756869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}