Elon Musk, CEO of Tesla, and billionaire investor Bill Ackman are calling on the Federal Reserve to stop hiking interest rates. In a series of tweets and public statements, both Musk and Ackman argue that raising rates could lead to a recession and harm the economy. They join a growing number of voices expressing concern about the pace of interest rate hikes and the potential impact on businesses and consumers. As the Fed considers its next move, the debate over interest rates is likely to continue.
Elon Musk and Bill Ackman have made headlines for their calls on the US Federal Reserve to take action in light of recent banking collapses in the country. Ackman, a billionaire investor and founder of Pershing Square Capital, took to Twitter to express his belief that the Fed should temporarily halt its interest rate-increasing strategy. This sentiment was echoed by Elon Musk, the CEO of Tesla and one of the world’s richest people. Musk tweeted that the Fed should lower interest rates by at least 50 basis points at the upcoming FOMC meeting.
In his tweets, Ackman highlighted recent examples of turbulence in the US banking system, including the collapse of Silvergate Capital, Silicon Valley Bank, and Signature Bank. He argued that increasing rates for a ninth consecutive time could lead to additional investor losses and the cascading of more banks. Instead, he called on the Fed to use alternative monetary tools, such as an FDIC deposit guarantee, until an updated insurance regime is introduced.
Musk supported Ackman’s stance, claiming that the Fed needs to drop interest rates by at least 50bps on Wednesday. Several cryptocurrency experts believe that such a decision could benefit digital assets like bitcoin, as it could lead to a market recovery and an increased interest in the cryptocurrency industry. However, most market participants do not expect the US central bank to pivot this week, with many predicting a lift in interest rates by 25 basis points, rounding the mark to 5%.
While both billionaires have called for action, it remains to be seen whether the Fed will take heed of their advice. Nonetheless, their comments demonstrate the impact that high-profile individuals can have on monetary policy and related industries.
Possible Titles:
– Billionaire Investors Call on US Fed to Halt Interest Rate-Increasing Strategy
– Elon Musk and Bill Ackman Urge Federal Reserve to Lower Interest Rates in Light of Turbulent Banking System