According to Musk, the current Fed trend is"concerning," and the regulator has to cut interest rates immediately. The entrepreneur is most likely referring to the poor state and performance of financial markets that cannot withstand the spike in selling pressure caused by the outflow of funds from the industry.
With the rising rate in the U.S., investment tools like one-year treasuries become more appealing for retail investors rather than high-risk assets like cryptocurrencies that have been losing most of their value in a matter of weeks. Trend is concerning. Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession.According to the entrepreneur, the Fed is"massively" amplifying the probability of a severe recession, which is why we are seeing a stricter monetary policy despite relatively calmer inflation data.