The Federal Reserve will communicate what it will do with the rate hike after the financial crisis. Although there is no consensus among economists on what measure to take, Elon Musk has already established his own position.
This Wednesday will be key for the markets. The Federal Reserve will communicate what it will do with the rise in rates after the financial crisis. Although there is no consensus among economists on what measure to take, Elon Musk has already established his own position through Twitter.
The Federal Reserve started a two-day monetary policy meeting yesterdaywhich has an important role to play in the current crisis of confidence in banks.
The Fed must decide on the interest rate trajectory at the end of the meetingperhaps the most important since he began raising rates in the second half of 2021.
In this context, the CEO of Tesla, who always makes people talk, asked the Fed to lower rates to avoid a new shock in the economy.
Bill Ackman of Pershing Square assured on his Twitter account that the banking crisis has already had an effect of “significant tightening of financial conditions”.
“We still don’t know where the losses are for investors in these institutions and what the contagion effects may be,” Ackerman added. With deposits becoming shaky, “what regional bank is going to commit significant capital for new construction or business loans in this context?”
Elon Musk jumped into the discussion and wrote bluntly: “the Fed needs to cut rates by at least 50 points on Wednesday.” Tesla, like many technology stocks, have suffered from the rate hike and it has been reflected in the drop in shares during 2022.
Source: Ambito
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