Elon Musk has said: Fed needs to drop the rate by at least 50bps on Wednesday.

Recently, Elon Musk has expressed his worries about how the Federal Reserve could potentially affect the entire stock market's value. He says that the Fed needs to tread carefully, especially when it comes to having a rate that would exceed 6%.

During Tesla's Q4 earnings call, Elon Musk talked about the central bank's moves against inflation. He said that the Feds should tread carefully while expressing his concerns that the stock market could be at risk.

Musk also expressed how the Fed is at risk of affecting all equities, which would be extremely dangerous for the whole market. The S&P 500 lost 20% last year while officials hiked interest rates by 425 basis points.

Musk: "Why don't you put your money in T-bills or [a] savings account essentially instead of in the S&P 500, if the S&P 500 is variable and the bank interest rate is not?"

This is not the first time that the Tesla and Twitter CEO criticized the moves of the Feds. Musk previously also urged the Feds to cut interest rates immediately as they were increasing the "probability of a severe recession."

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