Elon Musk recently expressed concerns about the financial future of the United States, suggesting that the country could face a recession unless too much spending is done. This estimate is based on the best interest rate the US government currently pays compared to what it earns on its income, he said in a post on the social media platform.
Musk’s comments came from a broader economic debate that also included the participation of US billionaire banker Jamie Dimon. Dimon said the possibility of the U.S. economy not being able to do so undermined confidence throughout the downturn. He spoke about the impact of Covid-19 on economic indicators, noting that although unemployment is low and wages are high, these conditions may be affected by the impact of the outcome.
Regarding Fed policy, Dimon said the central bank could quickly cut interest rates if necessary, but also noted the importance of maintaining confidence. Fed Chairman Jerome Powell echoed those sentiments, saying the central bank is considering lowering interest rates but expects increased confidence that inflation will continue toward its 2% target.
The concerns expressed by Musk and Dimon reflect a broader debate about the future of the American economy. As economic measures change and the impact of Covid-19 continues to spread, policymakers and financial experts are monitoring the situation to make it sustainable and stable.