Elon Musk and Bill Ackman ask the Fed to set the interest rate increases
Elon Musk and Bill Ackman ask the Fed to set the interest rate increases
Bill Ackman-an American billionaire and founder of Pershing Square Capital-is of the opinion that the US Federal Reserve should temporarily hire its policy to stabilize the local banking system and to prevent infection.
Teslas CEO and one of the richest people in the world-Elon Musk-the central bank pushed at the FOMC session this week to reduce interest rates by at least 50 basis points.
Pressing the stop button seems to be a must
Ackman took it on Twitter to Explain why the Fed should temporarily give up its interest rate strategy. He pointed out the youngest banking breakdowns in the United States, which were affected by stock and bond owners.
Apart from the already closed Silvergate Capital, Silicon Valley Bank and Signature Bank also had significant difficulties. The examples include the first Republic Bank based in San Francisco, whose stocks collapsed over 90 % last month.
Ackman believes that turbulence remain "unsolved", while increasing interest rates could cause additional investor losses and a domino effect of bank crashes for the ninth time in a row.
"This is not an environment in which the Federal Reserve should increase interest rates and put additional pressure on the system, since the financial stability is the first responsibility of the Fed."
The billionaire recognized the inflation rate in the USA as an existing problem that the Fed had to solve. However, the central bank should concentrate on other monetary instruments, such as "an FDIC deposit protection until an updated insurance system is introduced".
Musk's opinion on this topic
The CEO of Twitter-Elon Musk-replied to Ackmans tweet and claimed that the Federal Reserve should reduce interest rates by at least 50 basis points.
The Fed must reduce the key interest rate by at least 50 basis points on Wednesday
-Elon Musk (@elonmusk) 21. March 2023
Numerous supporters and experts from cryptocurrencies believe that such a decision for digital assets, including Bitcoin, could be great. A study recently carried out by Bitmex It could drive a market recovery and increase interest in the cryptocurrency industry, since investors are likely to be more important in search of higher returns Find asset.
However, it seems unlikely that the US Federal Reserve will change this week. Most market participants assume that interest rates are raised by 25 basis points and the brand is rounded to 5 %.
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