Elon Musk: Fed may destroy US stock market value

American billionaire Elon Musk expressed his concern that the Federal Reserve might destroy the stock market by raising interest rates too dramatically.

During Tesla’s earnings call on Wednesday, Musk said: I think the Fed needs to be very careful about the interest rate, which will likely exceed 6% levels.

Federal Reserve officials raised interest by 425 points last year to combat high levels of inflation, decisions that caused the S&P500 index to drop by about 20% and bond yields to rise.

Musk indicated that he is concerned that interest rates will soon exceed the average return of the S&P500 index, in the event that the Federal Reserve raises interest rates above 6%.

He added: Why don’t you put your money in treasury bonds or a savings account instead of the S&P500 index? The Fed is at risk of destroying the values of all stocks, which is a very serious risk.