Elon Musk says Fed been ‘foolish’ for not slicing interest rates yet

Tesla (TSLA) CEO Elon Musk said on Sunday that the Federal Reserve should lower interest rates, calling their decision not to do so already ‘foolish’ in wake of lackluster reports, raising concerns of a financial slowdown.

The remarks were made in response to a post on X, highlighting Warren Buffett’s (BRK.A) (BRK.B) cash reserve of $277B. “He is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills. ” Musk said in a post on X.

Musk’s feedback came after the Federal Reserve left the interest rate unchanged in the 5.25%-5.50% range, but opened the door to a possible rate cut at their Sept. 17-18 meeting.

Expectations for a half-percentage point rate cut in September climbed after Federal Reserve Chair Jerome Powell suggested policymakers could start their rate-easing cycle at their next meeting.

The possibility of rate easing starting in September is “on the table” if inflation meets the 2% goal and if data points to solid conditions in the labor market, Powell said.