Washington Post Op-ed and columnist Heather Long discusses the Federal Reserve’s managed interest rate cuts and the impact of July’s jobs report.
Billionaire Elon Musk The Federal Reserve said Sunday it was “foolish” for not cutting interest rates sooner after a disappointing jobs report that raised concerns about an economic slowdown.
“The Fed needs to lower interest rates,” Musk said in a post on X (formerly Twitter). “They’re stupid for not lowering rates before now.”
Musk’s comments were: Federal Reserve The Federal Reserve Board held its policy meeting last week and left interest rates unchanged at 5.25% to 5.5%, the highest level the Fed has held the rate in 23 years since July of last year.
Policy makers said inflation “remains modestly above” their 2% target, with June data showing inflation had fallen to 3%.
Fed keeps interest rates at 23-year high but hints at possible rate cut
Elon Musk says the Fed was “foolish” for not cutting interest rates sooner. (Mark Piasecki/Getty Images/File)
Federal Reserve Chairman Jerome Powell He said policymakers had not yet decided and would assess inflation and labor market data before taking a decision, but hinted a rate cut was possible at the central bank’s next meeting.
“The problem is that the balance of data, changing prospects and risks Confidence in inflation Powell said his goal was to “maintain a strong labor market,” adding that “if this condition is met, a rate cut could be considered at the Fed’s next meeting in September.”
U.S. payrolls slow to 114,000 in July, unemployment unexpectedly rises
Last week, the Fed kept interest rates on hold at their highest level in 23 years after disappointing employment data. (Ting Sheng/Bloomberg via Getty Images/File)
Musk made the comments in response to X’s post about the billionaire investor. Warren Buffett’s Berkshire Hathaway The company has increased its stockpiles of cash equivalents and short-term government bonds after reducing its holdings of stocks, including Apple, its largest holding.
“He’s clearly expecting some kind of correction or he simply can’t find a better investment than Treasury bonds,” Musk said.
Buffett’s Berkshire cuts Apple stake in half, boosts cash reserves to $277 billion and goes on the defensive
Federal Reserve Chairman Jerome Powell said the central bank could cut interest rates at its September meeting if inflation and labor market data improve. (Andrew Harnick/Getty Images/File)
According to the Labor Department’s latest jobs report on Friday, U.S. Economy Employment rose by 114,000, below the 175,000 predicted by economists at the London Stock Exchange Group.
Slower-than-expected job growth led to a surprise rise in the unemployment rate, rising to 4.3% amid expectations that it would remain at 4.1%.
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FOX Business’ Megan Henney and Reuters contributed to this report.
