Elon Musk Calls the Fed 'Foolish,' Says Agency 'Needs' to Lower Interest Rates On Monday, the U.S. stock market plummeted after a global selloff and fears of a recession.
By Emily Rella Edited by Melissa Malamut
Key Takeaways
- Elon Musk called for lowered interest rates on X over the weekend.
- Last week, the Fed announced that it would be keeping interest rates where they are at a current target range of 5.25%-5.5%.
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Newly declared Trump supporter Elon Musk is not holding back on his opinion on the U.S. Federal Reserve's decision to not cut back interest rates at its July meeting.
In a response to a post on X about Warren Buffett's Berkshire Hathaway unloading Apple stock, Musk mused that the billionaire must be "clearly expecting a correction of some kind" from the Fed.
Related: Elon Musk 'Worried' About Interest Rates, Lower Tesla Prices
"The Fed needs to drop rates," Musk wrote. "They have been foolish not to have done so already."
He is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills.
— Elon Musk (@elonmusk) August 4, 2024
The Fed needs to drop rates. They have been foolish not to have done so already.
This isn't the first time Musk has chimed in on what the Fed should do when it comes to raising or lowering rates. In March 2023, for example, Musk called for the Fed to drop baseline interest rates by "at least" 50 basis points.
Last week, the Federal Reserve held a policy meeting and decided to keep target interest rates where they were, at a range of 5.25%-5.5%. However, Federal Reserve Chair Jerome Powell said during that meeting that the possibility of the Fed cutting rates in September isn't farfetched.
"The question will be whether the totality of the data and the evolving outlook in the balance of risks are consistent with rising confidence in inflation and maintaining a solid labor market," Powell explained. "If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September."
Related: Elon Musks Weighs in on Fed's Crucial Decision to Raise Interest Rates
On Monday, U.S. markets went into a state of turmoil as the Dow, NASDAQ, and S&P 500 all plummeted following a June jobs report on Friday that pointed to a higher-than-expected unemployment rate in the country.
Economists have mused that the Fed could implement an emergency rate cut as early as next week should the market volatility continue to avoid a nationwide recession.
