Musk warned that if the FED makes a wrong decision, it will affect everyone.

(Associated Press)

[Financial Channel/Comprehensive Report] Tesla (Tesla) CEO Elon Musk (Elon Musk) posted on Twitter (Twitter) on Thursday (23rd) that if the policy of the Federal Reserve (Fed) goes wrong, could depress the value of the entire stock market.

The White House will nominate the vice chairman of the Fed in the near future. Musk emphasized that mastering monetary policy skills is extremely important for the new vice chairman, because any wrong decision by the Fed may affect everyone's life.

Please read on...

According to the minutes of the Fed meeting, the Fed will continue to raise interest rates this year, shattering investors' hopes for policy easing.

Over the past year, the Fed has raised key interest rates from near zero to nearly 5 percent to curb historically high inflation.

Musk had warned in January that aggressive rate hikes could deter investors from investing, crushing the value of the entire stock market.

Tesla blamed interest rate hikes for its dismal performance in 2022, when the company's stock price plummeted 65%, wiping US$600 billion (approximately NT$180 million) off its market value.

The Fed's rate hikes were seen as a drag on stocks as it became more attractive to park money in interest-bearing investments.

Stock prices also tend to fall when interest rates rise, as higher levels erode future cash flows that form part of a company's valuation.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news