Elon Musk's Take On FED Rate Hike 

FED Rate Hike, Elon Musk Responds To Banking System Being Safe

US Federal Reserve in the latest policy on Wednesday decided to take a much smaller hike in key interest rates by a quarter of a percentage point.

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The federal funds rate is now between 4.75% to 5%.

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Replying to WatcherGuru's tweet of banking system being safe, Elon Musk talked about the relationship between FED rates and depository behavior.

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"This foolish rate hike will worsen depositor flight," Elon Musk.

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He believes that a major driver of depositor flight is people moving money from low-interest savings accounts to high-interest money market (Treasury Bill) accounts.

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Elon Musk has already called on the Fed to cut rates by at least 50 basis points on Tuesday.

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Satirically, WSBChairman suggested GPT-4 be the new Chairman of the Federal Reserve. Musk responded- "Couldn’t do worse!"

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