West News Wire: Elon Musk responded to Ackman’s statement on Wednesday by urging the Fed to cut the rate by at least 50 basis points. After claiming over the weekend that the Fed was “working with way too much lag in their data” in light of recent bank failures, Musk reiterated his previous request for the Fed to lower interest rates.
Ackman stated in his article, “We do not yet know where the losses are for investors in these institutions and what the contagion implications may be. What regional bank will devote significant capital to new building or business loans in this situation, given the fragile state of deposits?
Fed Chairman Jerome Powell should make clear a pause is temporary and signal that “his intent is to resume raising rates at the next meeting unless the banking crisis remains unresolved,” Ackman wrote.
“This is not an environment into which the @federalreserve should be raising rates and adding additional pressure on the system as financial stability is the Fed’s first responsibility,” he added.