Amazon CEO Jeff Bezos has become the latest business leader to voice his concerns about the economic situation warning that tougher times are on the way.
In a tweet published Tuesday evening the former CEO and president of the company that operates online retailing made the same remarks that Goldman Sachs Chief Executive David Solomon offered to CNBC earlier during that day.
“Yep, the probabilities in this economy tell you to batten down the hatches,” Bezos declared in a post that was attached to a video of Solomon’s ” Squawk Box” interview.
Solomon who is the CEO of the Wall Street financial giant declared that it’s the right time for executives and investors to be aware of the risks that are building up, and to plan in advance.
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Solomon spoke to reporters after his firm was reported to have recently announced earnings for the quarter which exceeded Wall Street estimates. However, he warned that the possibility of a recession is looming in the face of the persistently high levels of inflation and the Federal Reserve trying to lower prices with a series of aggressive rate hikes.
“I think you have to expect that there’s more volatility on the horizon,” Solomon stated. “Now this doesn’t mean it’s certain that we’re facing a challenging economic situation. However, based on the distribution of outcomes it’s likely that we’re going to experience an economic recession across the United States.”
Fed officials have also warned that a recession could be a possibility due to the tightening of monetary policy, however, they are hoping to avoid the possibility of a recession. The policymakers of September predicted that the gross domestic product would increase by just 0.2 percent in 2022 and increase in 2023, but just 1.2 percent. GDP slowed during of the second and first quarters of this year, which was in line with the widely used definition of recession.
There are mixed signals recently from business leaders.
JPMorgan Chase CEO Jamie Dimon has been warning about the dangers ahead, telling investors this current situation has become “very, very serious” and that the U.S. could slip into a recession within six months.
But, Bank of America CEO Brian Moynihan told CNBC on Monday that data from credit cards and other data show that consumer spending has been steady.
“In the current environment, the consumer is quite good and strong,” said the actor stated in “Closing Bell.”
Moynihan acknowledged that the Fed’s efforts may affect the economic outlook, however, he also said his observation that “the consumer’s hanging in there.”