Billionaire Elon Musk stole the spotlight when he began voicing harsh criticism of the Federal Reserve (Fed), calling it 'stupid' for not cutting interest rates earlier.
His comments, made on social media platform X, followed a weak United States (US) NFP jobs report for July, raising concerns that prolonged high interest rates risk harming the economy.
Although the Fed kept its benchmark overnight interest rate steady at 5.25%-5.50%, it hinted at the possibility of an aggressive rate cut at its upcoming September 17-18 meeting.
Fed Chairman Jerome Powell indicated that a rate cut is possible if the economy is in line with expectations, putting the decision in the middle of the presidential election campaign.
Musk's remarks highlight the tension between economic policy and the political landscape.
A potential rate cut could affect economic stability and the ongoing presidential election, with policymakers trying to balance inflation control and economic growth.
The upcoming Fed meeting will be closely watched, with investors already anticipating a rate cut.
These results may have significant effects, shaping not only economic prospects but also political dynamics ahead of the election.
As a leading figure, Musk's opinions often influence market sentiment.
His criticism underscores a broader debate about the Fed's strategy and its impact on the economy.
The outcome of the Fed's next meeting will be important, potentially confirming Musk's concerns or reaffirming the central bank's approach to managing the US economy.
