Elon Musk warns of a possible serious recession in the US

Elon Musk, CEO of Tesla and billionaire, recently opined that the large number of banks that have failed is evidence that the economy is under stress. He believes that this is a consequence of the sharp tightening of the monetary policy of the US Federal Reserve over the past 7 months. In his tweet, he also noted that thanks to his companies - Tesla, Starlink and Twitter - he has more real-time global economic data than anyone else. He reacted to former US Treasury Secretary Larry Summers' prediction that the US has a 70% chance of slipping into recession in the coming year by saying that a moderate recession has already begun. He also warned of a severe downturn that could come with a further increase in the Federal Reserve's interest rate. Recently, the banking sector has faced shocks, including the collapse of First Republic Bank and the bankruptcy of Silicon Valley Bank. Musk also noted that Credit Suisse was also a victim of this crisis. He believes the Federal Reserve's interest rate hike caused the Tesla market to drop $600 billion in 2022.