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Saturday, December 10, 2022

Jeff Bezos warns of US recession

  • According to the IMF, the global inflation rate this year is likely to average 7.4 percent.

  • In the United States, inflation reaches 9.1 percent on a yearly basis.

  • US GDP fell 0.9 percent

The Kovid-19 pandemic, the war between Ukraine and Russia and whatever events have unfolded in the world in recent months are responsible for the economic crisis that is being recorded. Given this, many companies, organizations, and even entrepreneurs share their view, as did Amazon founder tycoon Jeff Bezos recently, who warned that the economy in the United States could be in a debilitating recession. moving towards.

This new alert joins those that have already been shared by many other influential figures on the economy. Recently rating agency Fitch cut US growth forecast for next year and warned that interest rate hikes and inflation by the Federal Reserve (Fed) would push the US economy into a recession like in 1990.

In that sense, Fitch forecasts that the United States’ gross domestic product (GDP) will grow 0.5 percent next year, compared to 1.5 percent in June.

Jeff Bezos on Alert for Recession in the United States

In a new statement, billionaire Amazon founder Jeff Bezos joins a growing group of business leaders who have warned that the US economy is headed for a debilitating recession.

“Yes, the odds in this economy tell you to fight for the hatch,” Bezos said in a CNBC interview.

Recall that Bezos still serves as CEO of Amazon, whose shares have plunged more than 33 percent since January during a widespread stock market crash. Similarly, Forbes list categorizes Bezos as the third richest person in the world with an estimated net worth of $137,900 million.

In the same interview Bezos participated in, there was also Goldman Sachs CEO David Solomon, who added to the warnings that he saw “good prospects” of an imminent recession.

In that context, Solomon detailed his outlook on the same day Goldman Sachs announced a major restructuring of its internal structure, where the bank reported better-than-expected earnings.

“I think it’s time to be cautious, and I think if you’re running a risk-based business, it’s about your risk box, your risk appetite,” Solomon said during an appearance on the American channel. It’s time to think more carefully.” CNBC.

Bezos and Solomon join others who have warned that a recession is imminent or already underway, including JPMorgan Chase CEO Jamie Dimon.

These new statements come as a conference board survey found that nearly all US-based CEOs expect a recession within the next 12 to 18 months.

Meanwhile, the nation’s president, Joe Biden, and other members of his administration have insisted the recession is still averted.

Bezos has been vocal about his economic views as things have gotten worse in recent months, even drawing criticism from the Biden administration for its response to the situation.

In May alone, Bezos and the White House exchanged public words after the Amazon boss defied taxes on the claim that growing businesses would reduce inflation.

Lastly, there are many who are sharing their perspective on the current economic crisis situation. But many of these warnings are also meant to prepare people for the impact this crisis can have around the world.

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