Elon Musk says recession likely if “Fed raises rates again next week”

Elon Musk tweeted on December 9, highlighting his concerns about an incoming recession.
Another hike in interest rate from the US Federal Reserve could kick-start a recession.
Musk’s favorite crypto, Dogecoin, seems to be stuck trading in a range and does not show any signs of a breakout.

Tesla CEO Elon Musk tweeted on Friday voicing his concerns about a recession. He mentioned that the United States Federal Reserve could catalyze a recession if it raises interest rates in the next week.

Elon Musk and recession concerns

Elon Musk took to Twitter, his newly acquired company, to warn his followers that a recession is likely under one condition. He added that they could risk a recession if the Fed continues to hike the interest rates.

If the Fed raises rates again next week, the recession will be greatly amplified
— Elon Musk (@elonmusk) December 9, 2022

The US Federal Reserve has raised interest rates from 0% in early 2022 to roughly 4% as of December 9. The Fed will need to decide on the next rate hike on December 13, which is what Musk is referring to in his tweet.

The current consensus is that the Fed will stick to a 50 basis point hike, but if the actual rate exceeds the forecast and comes in at 75 bps, it would be vital for the US dollar and bad for the markets.

Musk further adds that if the recession is triggered, it could extend to the second quarter of 2024.

Dogecoin price and Elon Musk

Elon Musk is well-known for being the Tesla CEO, but in the crypto community, he is the self-proclaimed “dogefather.” He is an avid supporter of Dogecoin, which is a dog-themed cryptocurrency.

Dogecoin price currently auctions at $0.096 and is stuck trading between the $0.0813 support level and the $0.112 resistance barrier. As long as DOGE hovers between these two trend lines, things will remain boring.

However, if Musk were to tweet about Dogecoin, it could induce volatility, triggering the altcoin to attempt a breakout above $0.112. If successful, DOGE could retest the $0.163 hurdle.

DOGE/USDT 1-day chart

However, a breakdown of the $0.0813 support level could cause the Dogecoin price to revisit the $0.0700 foothold.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.