23.12.2024 15:12
Billionaire businessman Elon Musk, who was nominated as the Secretary of Efficiency by the elected President of the United States, Donald Trump, reacted to the staff count of the Federal Reserve (FED) before taking office. Musk targeted the Fed with the remarks that it was "ridiculous."
In response to a message evaluating the FED's interest rate cut process, Elon Musk stated that the bank has "ridiculously too many employees." Elon Musk, the owner of Tesla and X, who provided significant support to Donald Trump during his presidential campaign, was rumored to be leading the "Department of Government Efficiency." Before taking office, Musk made an interesting assessment regarding the FED on his X account.
MUSK, OWNER OF TESLA AND X, EMPHASIZED EFFICIENCY
In response to a message evaluating the FED's interest rate cut process, Elon Musk stated that the bank has "ridiculously too many employees." Responding to a user's message regarding the FED's interest rate cut, Musk criticized the bank's staff count.
The quoted message included the following statements: The U.S. Federal Reserve (FED) lowered interest rates by 25 basis points on Wednesday, bringing the federal funds rate to 4.25%-4.50%. Jerome Powell projected only two interest rate cuts for 2025. This figure is lower than the four interest rate cuts anticipated earlier this year. Reflecting the increasing concerns about persistent inflation, Powell emphasized that after lowering interest rates by one point since September, they have entered a new phase where they will be "cautious about further cuts." Markets reacted negatively to the FED's more cautious approach to future interest rate cuts, with the S&P 500 dropping 3% within hours of the announcement.
Musk responded to this message by saying, "The FED has ridiculously too many employees." Musk's remarks targeting the FED before even taking office were interpreted as "the war has begun."
MUSK'S WARNINGS ABOUT THE FED IN 2022 WERE REMEMBERED
Musk had also stated in 2022 that the FED's high-volume interest rate hikes would raise the risk of deflation and that interest rate cuts should be implemented.