Tesla CEO Elon Musk Warns a Major Fed Rate Hike Risks Deflation Tesla CEO Elon Musk has warned that a major rate hike by the Federal Reserve risks deflation in the U.S. economy. Musk’s warning followed an analysis by Ark Invest CEO Cathie Wood, who cautioned that “Leading inflation indicators like gold and copper are flagging the risk of deflation.”
It risks hyperinflation. Higher debt service costs, a severe recession, exploding Federal budget deficits, and collapsing asset prices will produce a worse financial crisis than 2008. The Fed will respond with massive QE, tanking the dollar and sending consumer prices soaring.
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