Elon Musk agrees: “The Federal Reserve is on its way to crushing the American economy”
Senior economist Jeremy Segal from the University of Pennsylvania launched a sharp attack on the Federal Bank’s interest rate policy and its impact on the global and American economy – Musk did not remain indifferent and fully supported the professor’s words
Billionaire Elon Musk backed up the senior economist from the Wharton School of Business Administration (the prestigious school of the University of Pennsylvania where President Trump also studied) Jeremy Segal Ashek accused the Federal Reserve and its head, Jerome Powell, of being completely disruptive their response to the current economic downturn and thereby crushing the economy
Musk was responding to a tweet from Professor Segal, who told CNBC’s “Midtime Report” program on Friday that the Fed’s current policy path is “too tight” and “doesn’t make any sense to me.”
Segal, who admitted he was “very troubled” by the Fed’s handling of the situation, accused Powell and his colleagues of waiting too long to raise interest rates.
Now, Segal claimed, the Fed is sinking the economy by being too aggressive with interest rate hikes
“It’s like a pendulum. They were too easy, as I told you and many others, until 2020, 2021,” Segal said.
“And now, ‘Oh my God, we’re going to be real tough guys until we crash the economy.’ ‘Bad monetary policy’ would be an understatement.”
“Obviously Segal is right,” Musk tweeted on Saturday in response to a video of his words
Segal accused Powell of ignoring several economic indicators, including falling commodity prices, a slowdown in the US housing market, and a decline in the money supply.
Musk is among the many business leaders who have held a pessimistic view of the state of the American economy in recent months.
In June, he famously attacked the need for layoffs at Tesla while warning that he had a “super bad feeling” about the economy.
Earlier this month, Musk joined others in warning that the Fed risks causing “deflation,” or a harmful collapse in prices, by raising interest rates too aggressively despite a slowing economy.
The stock market has plunged deeper into negative territory since last week, when the Fed implemented a super-sized interest rate hike for the third month in a row.
Officials at the central bank said that further significant increases are expected in the coming months – a sign that the Fed is maintaining a hawkish course in its fight against the highest inflation in decades.
Despite the warnings of Segal, Musk and others, the Fed may steer the economy into a prolonged depression.
American GDP has already declined for two consecutive quarters – a phenomenon that meets the common definition of a recession.
Last week, Powell reiterated that the Fed plans to raise its rate to a “limiting level” and “leave it there for a while” until there are significant signs that inflation has receded.
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