Tesla Inc chairman Elon Musk expressed concerns about the Federal Reserve raising interest rates, saying it could lead to a collapse The stock market.

During Tesla’s fourth-quarter earnings call last week, Musk said he’s concerned that rates will soon exceed the average yield of the S&P 500 if the Fed hikes rates above 6%. reports the business insider.

“I think the Fed needs to be very careful about a Fed rate that might exceed 6%,” BI quoted him as saying on the earnings call.

“Why not basically put your money in T-bills or savings accounts instead of the S&P 500 when the S&P 500 is variable and the bank interest rate is not?” he said. “The Fed risks destroying the value of all stocks. A pretty serious danger.”

In a recent tweet, Musk said that as interest rates rise, the Fed increases its monthly payments on anything bought with debt.

Also read: Elon Musk testifies that he could have taken Tesla privately in 2018 with funds from SpaceX

After cutting interest rates to 0-0.25% following the outbreak of COVID-19 in early 2020, the central bank started raising interest rates in March 2022.

The Fed rate is currently between 4.25% and 4.50% after a cumulative 425 basis point hike.

Last week, Musk took to Twitter to remind himself the Federal Reserve cuts interest rates Interest rates after the Great Recession of 2007-09.

He shared how his flagship electric vehicle company received timely help during this time.

Last year, Musk warned that another rate hike by the Fed could be a possibility lead to deflation that hits the economy.

Bank of America has also warned that the economy could potentially slip into recession in 2023.