Elon Musk has a new arch-enemy: the Fed

There is a new foe in the Federal Reserve.

The US central bank has been accused of soldiering on with interest rate hikes by the CEO of the electric car company. The comments came after the electric carmaker blamed a strong dollar for a quarterly sales miss.

Musk said that the Fed is raising rates more than they should. They will eventually realize that and bring it back down again.

The Fed lifted rates from almost zero in March to a range of 3% and 3% today and signaled they could approach 5% next year. Inflation rose to a 40-year high of 9.1% in June and stayed above 8% in September.

Musk thinks the central bank is too focused on how much prices have gone up over the past year. He said that copper and other commodities have retreated from their highs, and that the company is seeing deflation.

Musk said on the call that the Fed was not listening because they were looking at the mirror.

If the Fed changes course and starts cutting rates again, that would weaken the dollar and lower borrowing costs, so it's worth pointing out thatTesla stands to benefit. The central bank's hikes have boosted the US dollar to a 20-year high against other major currencies this year, which resulted in it falling short of Wall Street's expectations.

If the Fed starts to loosen its monetary policy, that will likely cause a surge in vehicle sales.

Musk said on the call that demand is harder than it would be otherwise.

The stock market could get a boost if rates are paused or reduced. It would be easier for Musk to raise more money if the stock price went up.

Musk has been complaining about the Fed's inflation fight for a while, saying its officials are too focused on lagging economic indicators.

He said there was too much delay in Fed decisions. There is a problem in a fast-changing world.

The Fed failed to nip inflation in the bud, and now it's going too far with rate hikes, which could lead to a harsh recession.

Musk said that Siegel is correct.

It's clear that Musk has a new enemy in his sights, whether he's worried about an overzealous Fed choking economic growth or stressing about the impact of higher rates on the value of his shares.

Bank of America names 23 stocks that could soon rally as ripe candidates for M&A, and explains the "signs of life" that will drive dealmaking.