Elon Musk: Inflation has peaked and the recession will be mild

In another meeting with Tesla shareholders, the billionaire was optimistic about the future of the US economy.

Elon Musk has faith in the future

At Tesla’s last shareholders’ meeting, the billionaire spoke out about the difficulties facing the US economy.

To top the highest inflation rate in 40 years, the Federal Reserve raised its interest rates. This has negatively impacted many industries, including the crypto world. In addition, many uncertainties arise as a result of the conflict between Russia and Ukraine and the rising tensions with China. This has led many economists to believe that the United States will enter a period of economic recession.

Musk has already given a warning about what lies ahead. He stated that a period of crisis could lead to several bankruptcies. This could last until the end of 2023. However, the richest man in the world seems convinced that the scenario will not be as bad as many suggest.

Despite noting that macroeconomic forecasting is a recipe for disaster, he predicts the coming crisis will be relatively mild. One reason for this would be the low debt of most companies.

The debt companies now have is relatively low, so I expect a mild to moderate recession, maybe 18 months or so.

– Says Musk.

Falling inflation

The Tesla CEO said he and his team have a good idea of ​​where the prices of things are going over time. This is due to the fact that the car company works with different products from different parts of the world.

“We get a lot of information about where the prices of things are going over time. Because if you make millions of cars, you have to buy goods many months before they are needed. Because it’s a long supply chain with a huge amount of delays, so we have an idea where the prices are going over time. What we’re seeing now is that most of our raw materials, most of the things that go into a Tesla, not all of it, but more than half of it, drop in price within six months.” So says Musk.

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As the prices of the raw materials used by the company are already falling, this is a trend that should continue for the next six months. Therefore, Musk expects inflation to fall quickly.

For many analysts, an improvement in the global economic scenario is crucial for the cryptocurrency market to enter another bullish cycle and reach new highs and records.

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