Elon Musk says recession is ‘invetiable’ and likely to hit soon

  • Tesla CEO and founder Elon Musk has said a recession is likely to happen at some point in the near future.
  • Musk commented on the Biden administration’s stance that a recession is “not inevitable.”
  • Wall Street firms also forecast higher odds of a recession in the next two years.

Billionaire Elon Musk said Tuesday that a


recession

it is “inevitable” and will probably take place sooner rather than later.

The Tesla CEO made his comments at the Qatar Economic Forum, where he was asked about his “super bad feeling” about the economy and what he thought of claims made by Biden administration officials that a US recession “it is not inevitable”.

“Well, I think a recession is inevitable at some point,” Musk replied. “As for whether there’s a recession in the short term, I think it’s more likely than not.”

“It’s certainly not a certainty,” he added.

Musk’s assessment comes as Wall Street has predicted increased odds of an incoming recession, with Goldman Sachs saying on Tuesday that the United States faces a 30% chance of suffering such a downturn over the next year, up from its previous forecast. of 15%.

The company highlighted a 48% cumulative probability of a US recession occurring in the next two years.

Meanwhile, Morgan Stanley’s chief US equity strategist Mike Wilson said the firm’s economists have estimated the chance of a recession over the next year at 35%, versus 20%.

“At this point, a recession is no longer just a tail risk given where the Fed is with inflation,” Wilson said in a note on Tuesday.

Deutsche Bank also said on the same day that it is now predicting a recession earlier than it previously expected.

Musk has spoken before about how the United States is fast approaching a recession. In December, he said his “gut feeling” was that it would probably happen in the spring or summer of 2022, but no later than 2023.

“I’ve been through some [recessions]” he said at a tech conference in May. “And what tends to happen is if you have a boom that goes on too long, you get a misallocation of capital. It basically starts raining money on fools,” Musk added.

Meanwhile, President Joe Biden stressed in an Associated Press interview last week that a recession is still avoidable and urged Americans to remain confident.

“First of all, it’s not inevitable,” he told the AP. “Second, we are in a stronger position than any nation in the world to beat this inflation.”

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