CEO of electric vehicle maker Tesla (TSLA) has been repeating for the past few days his fears about what awaits the economy as the Federal Reserve prepares to raise interest rates again in the hope of countering the inflation at its highest in 40 years.
The central bank is holding a two-day monetary meeting on Sept. 20-21. At the end of this meeting, economists, expect the institution to raise its rates by at least 75 basis points, or 0.75% in view of the latest figures which show that the rise in the price of goods and services is far from calming down
The tech tycoon believes that a jumbo rate hike of 0.75% by the Fed is likely to trigger the equally worrisome scenario of deflation.
"A major Fed rate hike risks deflation," the billionaire warned on Sept. 9.
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