Elon Musk Deflation Warning Likely As Fed Admits To Overshooting

The Federal Reserve is dictating the monetary policy of the US and is controlling the market movement as a result. The Fed continues to follow its hawkish stance despite the economic slowdown and spiking unemployment. However, its aggressive stance can make Elon Musk’s deflation warning a possibility. For the first time, Minnesota Fed President Neel Kashkari finally admits that the central bank can possibly overshoot.

Tesla and SpaceX CEO Elon Musk gave a dire warning to the Fed. He stated that Fed’s hawkish stance and another jumbo hike can result in deflation. Cathie Woods of Ark Investments also believes that deflation is a possibility as the Fed overshoots.

Deflation vs Recession

The Fed’s hawkish stance has led to multiple side effects. The initial jobless claims reveal a spike in unemployment. Similarly, the World Ba