Jump to content

Janet Yellen, Elon Musk Warns Severe Recession, Will Crypto Crash Again?


Recommended Posts

Treasury Secretary Janet Yellen in an interview on January 27 said the risk of a recession still persists despite better inflation and jobs data, reported Bloomberg. She believes the Federal Reserve will continue raising interest rates and high interest rates increase recession fears.


U.S. Q4 GDP report also comes in at 2.9% against the expected 2.6% indicating a decline a recession fears and cooling inflation. However, consumer and business spending dropped in December due to higher interest rates that impact purchasing power.


She believes maintaining a strong labor market while bringing inflation down indicates a slowdown in economic growth.


Meanwhile, Elon Musk has continuously warned the Federal Reserve of the increasing risks of recession with its hawkish rate hike approach. The Fed announces a 50 bps rate hike in the last FOMC meeting, after four consecutive 75 bps rate hikes.


Musk plans to reduce costs on everything related to Tesla to deal with a recession despite a strong Q4 earnings report. He believes companies will continue to layoffs and cost-cutting due to high interest rates.


Moreover, JPMorgan CEO Jamie Dimon expects interest rates to go beyond 5% as inflation remains high. According to CME FedWatch Tool, the probability of a 25 bps rate hike is 98.4%.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Create New...