Billionaire and Tesla CEO Musk said last Sunday that it was &#34;stupid&#34; for the Federal Reserve not to cut interest rates sooner.
Last Friday, following a disappointing non-farm payroll report that raised concerns about an economic slowdown, Musk wrote in a post, &#34;The Fed needs to lower interest rates, and it's stupid that they haven't done so.&#34;
Last Friday, the latest employment report from the US Department of Labor showed that the US economy added 114,000 jobs, below the market's forecast of 175,000 jobs, while the unemployment rate unexpectedly jumped to 4.3%, higher than the market's expected 4.1%.
Before making the above remarks, Musk made them after the Fed held a policy meeting last week and continued to keep the target interest rate at its highest level in 23 years, between 5.25% and 5.5%, a level the Fed has maintained since July last year.
Fed policymakers at the time said that inflation was still &#34;slightly above&#34; the 2% target rate, with June data showing inflation falling to 3%.
Fed Chairman Powell hinted that the Fed's next meeting might involve a rate cut, but he said policymakers had not made a decision and would assess inflation and labor market data before making a decision.
Powell said, &#34;The question will be whether the data, evolving risks, and risk balance are consistent with increasing confidence in inflation and maintaining a stable labor market. If this standard is met, a rate cut may be discussed as early as the next meeting in September.&#34;
Powell's remarks suggest that the Fed's more than two-year battle against inflation is coming to an end, but it comes at a time of the US presidential election.
Musk made the above remarks in response to a post that said billionaire investor Buffett's Berkshire Hathaway had reduced its stock positions, including &#34;slashing&#34; its stake in Apple, the largest holding company, while increasing reserves of cash equivalents and short-term US Treasuries, increasing its cash reserves to $277 billion.
Musk said, &#34;He (Buffett) obviously expects some kind of adjustment, or simply doesn't see a better investment than US Treasuries.&#34;
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Elon Musk lashes out at the Federal Reserve: Not cutting interest rates in July is really stupid!