The Fed should have already cut interest rates

05.08.2024. / 9:27

NEW YORK – Billionaire Elon Musk said that the Federal Reserve should cut interest rates and that “it’s stupid that the US central bank hasn’t already done it.”

Musk’s comments, which he made in response to a post on the social network X, followed a series of weak data last Sunday that raised concerns that the Fed has kept interest rates high for too long, causing damage to the economy, Reuters reports.

Policymakers left the Fed’s benchmark interest rate unchanged last Sunday in a range of 5.25 percent to 5.50 percent, but opened the door to a rate cut at the 17-18 meeting. September. Traders believe that a decision to cut interest rates will almost certainly be made at that meeting.

Fed President Jerome Powell said last Sunday that the central bank could cut rates next month if the US economy follows the expected path. This would bring the central bank close to the end of a two-year fight against inflation, but in the middle of the US presidential election campaign. Biznis.rs