Amazon founder Jeff Bezos warns it’s time to ‘batten down the hatches’


Amazon CEO Jeff Bezos speaks throughout the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain, November 2, 2021.

Paul Ellis | Reuters

Amazon founder Jeff Bezos has change into the newest company chief to warn about the state of the economic system, cautioning that rougher occasions are seemingly forward.

In a tweet posted Tuesday night, the former president and CEO of the on-line retailing big echoed feedback that Goldman Sachs Chief Executive David Solomon made to CNBC earlier in the day.

“Yep, the probabilities in this economy tell you batten down the hatches,” Bezos stated in a remark connected to a clip of Solomon’s “Squawk Box” interview.

Solomon, the head of the Wall Street financial big, stated it’s time for each company leaders and buyers to perceive the dangers increase, and to put together accordingly.

Solomon spoke after his agency had simply posted quarterly earnings outcomes that beat Wall Street estimates. Yet he stated a recession might be looming as the economic system offers with persistently excessive inflation and a Federal Reserve making an attempt to decrease costs by way of a collection of aggressive rate of interest will increase.

“I think you have to expect that there’s more volatility on the horizon,” Solomon stated. “Now, that doesn’t mean for sure that we have a really difficult economic scenario. But on the distribution of outcomes, there’s a good chance that we have a recession in the United States.”

Fed officers have additionally been warning {that a} recession is feasible because of the financial coverage tightening, although they hope to keep away from a downturn. Policymakers in September estimated that gross home product would develop simply 0.2% in 2022 and rebound in 2023, however to just one.2%. GDP contracted in each the first and second quarters this 12 months, assembly a generally held definition of a recession.

There have been combined alerts recently from company leaders.

JPMorgan Chase CEO Jamie Dimon has been warning of troubles forward, saying just lately that the state of affairs is “very, very serious” and that the U.S. may slip into recession in the subsequent six months.

However, Bank of America CEO Brian Moynihan advised CNBC on Monday that bank card information and associated info present that shopper spending has held up.

“In the current environment, the consumer is quite good and strong,” he stated on “Closing Bell.”

Moynihan acknowledged that the Fed’s efforts may sluggish the economic system, however famous that “the consumer’s hanging in there.”

Current consumer environment is quite strong, says Bank of America CEO Brian Moynihan

Source Link