Industrialist Elon Musk said Wednesday that instead of further tightening monetary settings, the Federal Reserve should “immediately” lower interest rates or risk a “severe recession” in the U.S. economy.
Musk made the remarks in a post on Twitter, responding to a comment made by Tesmanian co-founder Vincent Yu, who predicted a “real economic recession” next year.
In the face of deteriorating economic indicators, analysts have been debating whether the U.S. economy will tip into a recession and if the contraction will be mild or severe.
“Trend is concerning. Fed needs to cut interest rates immediately,” Musk said in his post. “They are massively amplifying the probability of a severe recession.”…