US Federal Reserve (FRS) discount rates are too high. This was stated by the American billionaire founder of Space X, Elon Musk, at the presentation of the quarterly results of his Tesla Corporation.
“The Fed is raising interest rates more than it should. <...> I think eventually they’ll figure it out and lower the stakes once more.” — said the businessman.
Elon Musk called the current state of the North American economy “pretty good” in comparison with the countries of the European Union, which are faced with high inflation and rising energy costs, as well as problems in relations with China.
It is noted that since the beginning of this year, the Fed has been constantly raising the key rate in order to bring high inflation to the target of 2%. Analysts predict a rate increase at the same pace in November to 3.75-4% per annum.
Earlier, JPMorgan CEO Jamie Dimon said that the US might face a recession six months later.