LOS ANGELES - MAR 2: Elon Musk at the 2014 Vanity Fair Oscar Party at the Sunset Boulevard on March 2, 2014 in West Hollywood, CA

Signs of Recession? Gas Hits New High, Layoffs, and Musk’s Warning

Prices rising at record rates, 10 states with an average gas price of $5 a gallon or higher; more companies announce 10% workforce layoffs or higher; Biden snipes Musk’s “super bad feeling” about the economy; plus, Fed inflation moves.

10 states reach $5 per gallon, several halfway to $6

The average cost of a gallon of unleaded regular gasoline reached $4.865 in the US on Monday, according to AAA. Two additional states joined those already paying $5 per gallon or more, bringing the total to 10 states.

Seven states are less than ten cents away from $5 per gallon now, including Pennsylvania, New Jersey, Massachusetts, Rhode Island and Vermont, New Hampshire, and Maine.

A handful of states are within sixty cents or less than reaching $6 per gallon including Washington, Oregon, Nevada, Hawaii, and Illinois. California is currently at $6.341.

More companies announce layoffs

Last Friday, Tesla’s CEO sent an email to all employees announcing that the company will cut 10 percent of its salaried workers and will rely more on hourly workers, CNBC reported. In its year-end financial filing, Tesla said it employed 99,290 people around the world as of the end of 2021.

On Monday, according to an email obtained by Fox 10, Carvana chairman and CEO Ernie Garcia III of the Tempe-Arizona based car retailer Carvana, wrote in an email dated May 10 that the company would be laying off 12% of its workforce, roughly 2,500 employees, citing “recent macroeconomic factors” and declining sales.

Biden snipes Musk over his “super bad feeling” about economy

Some back and forth sniping between President Joe Biden and Tesla CEO Elon Musk after the billionaire announced layoffs to executives at the electric vehicle company, saying in an email he had a “super bad feeling” about the economy.

When asked for his reaction to Musk’s comment by reporters, president Joe Biden sniped: “So, you know, lots of luck on his trip to the Moon.”

Musk responded by sharing an article that his SpaceX company will be providing the US government’s space program with rockets for its upcoming Artemis program that will send astronauts to the moon, Fox reported.

Fed delivers fuzzy interest rate message

The Federal Reserve is hinting at all but certain half-point interest-rate increases in June and July, Bloomberg reported. However, Federal Reserve officials, for now, are focusing on trying to determine the broader impact their current policies are having on the economy.

30-year mortgage rates up

Thirty-year mortgage rates have now risen to a recent high of 5.6%, according to Bankrate.com, which equates to roughly $400 more in additional monthly payments on a $300,000 loan as compared to where rates were in January.

Yellen admits being wrong on inflation

Last week, US Treasury Secretary Janet Yellen admitted Tuesday she was wrong about inflation only posing a “small risk.”

“I think I was wrong then about the path that inflation would take,” Yellen told CNN. “As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t – at the time – didn’t fully understand, but we recognize that now.”