Ahead of this Wednesday’s meeting of the Federal Reserve Board, billionaire Elon Musk weighed in asking followers about their thoughts on inflation the coming years, as well as advising them to stick to fundamentals such as home ownership or stock in company’s with good products.
“As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high,” shared Musk on twitter.
US consumers have been badly rattled by 7.8% inflation in February, the highest in forty years, and the US Federal Reserve Bank is expected to raise interest rates on Wednesday. ´
According to comments by St. Louis Fed President Jim Bullard earlier in March the US economy has more than fully recovered from the pandemic recession and is expected to grow faster than its longer-run potential growth rate in 2022, creating slack for rate hikes.