Tesla CEO Elon Musk on Sunday said that the US
Federal Reserve
should lower
interest rates
, calling their decision not to do so already “foolish.” Musk’s remarks were in response to a post on X, which highlighted Warren Buffet’s Berkshire Hathaway having cash reserves of $277 billion.
“He (Warren Buffet) is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills,” Musk said in a post on X.
“The Fed needs to drop rates. They have been foolish not to have done so already,” he added.
On Wednesday, the US Federal Reserve signaled progress towards its 2% inflation target, suggesting a possible
rate cut
in the near future, which would be the first in four years. The Fed’s statement after its two-day meeting acknowledged moderated job gains and an increase in the unemployment rate. As an institution tasked with ensuring stable prices and maximum employment, the central bank emphasized its attentiveness to the risks associated with both objectives, indicating a shift from its recent focus solely on controlling inflation. The Fed’s policymakers unanimously decided to maintain the benchmark interest rate between 5.25% and 5.50%, reflecting “some further progress” in the fight against inflation.
During a press conference on Wednesday, Fed Chair Jerome Powell suggested that the central bank might lower rates next month if the US economy continues on its anticipated trajectory. This statement positions the Fed close to concluding its more than two-year battle against inflation while also placing it at the center of the nation’s presidential election campaign.
