SPY - Tesla Investor Ross Gerber Feels The Fed Is 'Killing Innovation In America' Calls For 100 Basis-Point Rate Cut In H1 Next Year | Benzinga
The Federal Reserve‘s policy-setting arm, the Federal Open Market Committee, kicks off a two-day meeting on Tuesday, with the futures market pricing in another pause decision. Tesla investor and CEO of Gerber Kawasaki Wealth and Investment Management, Ross Gerber, offered his take on what the central bank should be doing over the next year.
What Happened: In a social media post on Monday, Gerber said interest rates “are way too high.” His view aligns with that held by many analysts, including Ark Investment Management founder Cathie Wood.
Gerber mentioned that the Fed, with its hawkish stance, is “snuffing out small businesses and will eventually cause many more bankruptcies and defaults.”
“The Fed is killing innovation in America,” he added.
Interest rates are way too high. It's snuffing out small businesses and will eventually cause many more bankruptcies and defaults. The Fed is killing innovation in America. 🇺🇸 — Ross Gerber (@GerberKawasaki) December 11, 2023
The Jerome Powell-led central bank began raising rates in March 2022 from near-zero levels to a 22-year high of 5.25%-5.50%. After raising rates in each of its meetings, the Fed has held fire in each of the past two meetings.
The high-interest rate environment has hurt companies and consumers alike, with the former impacted by a cautious consumer and ...