Elon Musk, Peter Schiff, Bill Ackman Warn US FED and FDIC Ahead Of FOMC Rate Hike
Elon Musk, Peter Schiff, and Bill Ackman warned the Federal Reserve (Fed) and FDIC that the banking crisis could get worse if the central bank decides to keep raising rates.
The US Federal Reserve, Treasury Department, and FDIC are investigating the possibility of insuring all bank deposits in the US. This allows the FDIC to temporarily guarantee deposits in most accounts above the current limit of $250,000 without seeking Congressional approval.
With the banking crisis continues despite the efforts of the US government and regulators, a total of $18 trillion in deposits will be guaranteed if the situation escalates. The FDIC, FED, and Treasury Department have previously ensured taxpayers will not bear the costs of this crisis.
Billionaire Bill Ackman took to Twitter to share his concerns about the deepening banking crisis ahead of the FOMC meeting. He said a series of major shocks to the system following the closure of his three US banks, the bankruptcy of Credit Suisse, and zero subordinated bondholders in a week has forced the Fed to pause. I think it should.
“The Fed needs to cut interest rates by at least 50 basis points on Wednesday,”
Tesla CEO Elon Musk told Bill Ackman, adding that the FDIC will cut current rates to prevent a bank crackdown. We believe that the $250,000 cap needs to be raised. Last year, Musk and several other crypto influencers warned the Fed about raising interest rates to increase recession risk.
Economist Peter Schiff blamed the US Federal Reserve and FDIC for the current US banking crisis. He believes the banks were well-functioning before his FDIC and that inflation will destroy the value of all bank deposits, saying that
“He has $18 trillion in assets backed by $100 billion in Treasury bonds.” pledge,”
he said.
According to a recent tweet by Elonmusk;
What you need to stop a bank run.
PeterSchiff Replying To Elonmusk Tweet;
The US banking system is now in default, thanks to the Fed and FDIC. Banks were much more solid under the gold standard and before the FDIC. $18 trillion in deposits “backed” by $100 billion in government bonds. All bank deposits will soon be worthless due to inflation.
Bitcoin Price Remains Strong at $28,000
Bitcoin’s price is trading at $27,506, down more than 1% over the past 24 hours as investors await the Fed’s rate hike decision. BTC price will reach $30,000 if the Fed suspends rate hikes on Wednesday amid bank woes.
Elon Musk, Peter Schiff, and Bill Ackman warned the US Federal Reserve and Federal Deposit Insurance Corporation (FDIC) ahead of the Federal Open Market Committee’s (FOMC) rate hike.
Musk, the CEO of Tesla and SpaceX, expressed concern about rising interest rates on Twitter, writing,
“Interest rates are rising & will continue to rise, creating risk for investors with high exposure to the stock market.”
Schiff, a renowned economist, and CEO of Euro Pacific Capital warned that the FOMC’s raising rates would trigger a financial crisis. He said,
“The next time the Fed shocks the market with a rate hike, it will trigger the next recession.”