Elon Musk has proven adept at lowering things this year – just look at the share price of Tesla, or the advertising revenue at Twitter.Federal Reserve chairman Jerome Powell is far from done in the fight against inflation.Musk took to Twitter on Wednesday night to implore the Federal Reserve to slash rates immediately and stave off economic disaster.“Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession.
He noted that the Fed has done a lot of heavy lifting, and there is a lag between the announcement of rate increases and their impact on the economy. and bond traders knocked estimates of the Fed’s terminal rate down 20 basis points to just below 5 per cent. But it is worth noting that the Dow is now down just 5.5 per cent for the year. After everything we’ve seen – the blow-up in tech stocks, the unwinding of the froth in venture capital, the worst year for bond investors in history, the fastest rate increasing cycle in generations – to end the year with the mildest of mini corrections would be remarkable.
“At that time, markets likely will focus on better economic and corporate fundamentals in 2024 and trade at levels higher than now.