Amazon founder Jeff Bezos has become the latest business leader to warn about the state of the economy, warning that tougher times are likely to come.
In a tweet posted on Tuesday evening, the former chairman and chief executive of the online retail giant echoed comments Goldman Sachs chief executive David Solomon made to CNBC earlier in the day. .
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“Yeah, the odds in this economy are telling you to batten down the hatches,” Bezos said in a comment attached to an excerpt from Solomon’s “Squawk Box” interview.
Solomon, the chief of the Wall Street financial giant, said it was time for business leaders and investors to understand the risks that are piling up and prepare accordingly.
Solomon spoke after his company had just reported quarterly results that beat Wall Street estimates. Still, he said a recession could be looming as the economy faces persistently high inflation and a Federal Reserve trying to bring prices down with a series of aggressive interest rate hikes.
“I think you should expect more volatility on the horizon,” Solomon said. “Now, that doesn’t mean for sure that we have a really difficult economic scenario. But on the distribution of the results, there is a good chance that we have a recession in the United States.”
Fed officials have also warned that a recession is possible due to monetary policy tightening, although they hope to avoid a slowdown. In September, policymakers estimated that gross domestic product would grow only 0.2% in 2022 and rebound in 2023, but only 1.2%. GDP contracted in the first and second quarters of this year, meeting a commonly accepted definition of a recession.
Business leaders have recently received mixed signals.
JPMorgan Chase CEO Jamie Dimon has warned of trouble ahead, recently saying the situation was “very, very serious” and the United States could slide into recession within the next six months.
However, Bank of America CEO Brian Moynihan told CNBC on Monday that credit card data and related information shows consumer spending has held up.
“In today’s environment, the consumer is pretty good and strong,” he said on “Closing Bell.”
Moynihan acknowledged that the Fed’s efforts could slow the economy, but noted that “the consumer is hanging on.”