Prominent economist Nouriel Roubini has criticized Elon Musk and Donald Trump in his tweet highlighting their calls for rate cuts.
What Happened: Roubini cited Musk’s tweet on interest rate cuts where the Tesla founder called for a rate cut saying the central bank is increasing the probability of recession.
“Trend is concerning. Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession,” Musk had tweeted on Nov. 30.
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Citing this tweet, Roubini criticized both Musk and Trump saying they tried to bully the Federal Reserve into cutting rates because of their own interests.
No wonder that both Trump and now Musk tried to bully the Fed to cut rates. They are both kings of highly leveraged debt zombie enterprises and talking their own book https://t.co/cZzTzUy8V7
— Nouriel Roubini (@Nouriel) December 1, 2022
Price Action: Markets surged this week following Powell’s speech on Wednesday where he said the central bank may slow the pace of rate hikes as soon as December. The SPDR S&P 500 ETF Trust SPY had closed 3.14% higher on Wednesday while the Vanguard Total Bond Market Index Fund ETF BND closed 0.78% higher.
Roubini is not the only noted economist to have criticized Trump. Former Treasury Secretary Lawrence H. Summers had said that Trump, in many ways, set the stage for the inflation that the U.S. is witnessing.
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