Amazon founder Jeff Bezos has grow to be the newest corporate leader to warn in regards to the state of the economy, cautioning that rougher times are likely ahead.
In a tweet posted Tuesday evening, the previous president and CEO of the net retailing giant echoed comments that Goldman Sachs Chief Executive David Solomon made to CNBC earlier within the day.
“Yep, the chances on this economy let you know batten down the hatches,” Bezos said in a comment attached to a clip of Solomon’s “Squawk Box” interview.
Solomon, the pinnacle of the Wall Street financial giant, said it is time for each corporate leaders and investors to know the risks increase, and to arrange accordingly.
Solomon spoke after his firm had just posted quarterly earnings results that beat Wall Street estimates. Yet he said a recession could possibly be looming because the economy deals with persistently high inflation and a Federal Reserve attempting to lower prices through a series of aggressive rate of interest increases.
“I feel you may have to expect that there is more volatility on the horizon,” Solomon said. “Now, that doesn’t suggest needless to say that we now have a very difficult economic scenario. But on the distribution of outcomes, there’s a great likelihood that we now have a recession in the US.”
Fed officials have also been warning that a recession is feasible because of this of the monetary policy tightening, though they hope to avoid a downturn. Policymakers in September estimated that gross domestic product would grow just 0.2% in 2022 and rebound in 2023, but to only one.2%. GDP contracted in each the primary and second quarters this 12 months, meeting a commonly held definition of a recession.
There have been mixed signals currently from corporate leaders.
JPMorgan Chase CEO Jamie Dimon has been warning of troubles ahead, saying recently that the situation is “very, very serious” and that the U.S. could slip into recession in the subsequent six months.
Nevertheless, Bank of America CEO Brian Moynihan told CNBC on Monday that bank card data and related information show that consumer spending has held up.
“In the present environment, the buyer is sort of good and powerful,” he said on “Closing Bell.”
Moynihan acknowledged that the Fed’s efforts could slow the economy, but noted that “the buyer’s hanging in there.”