Elon Musk says a US recession is 'inevitable'

On Tuesday billionaire Elon Musk said he believes a recession in the near future is "more likely than not" explaining that recessions are bound to happen.

Musk, 50, was interviewed at the Qatar Economic Forum hosted by Bloomberg where he answered questions about the US economy, his Twitter acquisition, and Tesla job cuts among other things.

Host John Micklethwait who is also editor-in-chief of Bloomberg News asked the SpaceX founder what his thoughts were after President Joe Biden rebuffed claims that a recession was inevitable.

"A recession is inevitable at some point," Musk said. "As to whether there is a recession in the near-term, I think that is more likely than not. Assuming it is not a certainty but it appears more likely than not."

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Musk's prediction of a recession soon echos other economists anticipation of a dip in the economy in early 2023.

Last week, the Federal Reserve raised interest rates 75 basis points, the most since 1994, in an effort to fight inflation. Their goal is to create a soft-landing for when the economy slows down in the future.

The Department of Labor released a press release saying inflation is now at 8.6 percent,

Goldman Sachs raised their prediction of a recession to 30 percent from 15 percent on Tuesday. Goldman's Chief Economist Jan Hatzius wrote to clients, "We now see recession risk as higher and more front-loaded".

Other financial institutions such as Deutsche Bank, Morgan Stanley, and Nomura have warned clients that a recession is likely to occur. Although many are optimistic it will not be a long depression in the likeness of the 2008 recession.

Back in May, Musk responded to a Twitter follower explaining how a recession is "a good thing" as it's "been raining money on fools for too long." He went on to tweet he expects it to last anywhere from 12 to 18 months.

Nevertheless, Americans are preparing for a slowdown in the economy and job growth in the coming year.

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