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Tags: jeff bezos | amazon | warns | recession | goldman sachs

Bezos' Recession Warning: 'Batten Down the Hatches'

By    |   Wednesday, 19 October 2022 12:31 PM EDT

Billionaire Jeff Bezos joined business leaders in warning that the U.S. is headed toward a severe recession.

Bezos on Tuesday night tweeted a clip of Goldman Sachs Chief Executive David Solomon telling CNBC that there's a "good chance we could have a recession."

"Yep, the probabilities in this economy tell you to batten down the hatches," Bezos, Amazon founder, wrote on his post.

After Goldman Sachs on Tuesday reported a smaller-than-expected slump in third-quarter profit, Solomon told Reuters that the U.S. might tip into a recession next year.

He added, however, that it was possible inflation can be tamed without causing too much economic pain.

"There's a reasonable chance of a recession in the U.S., but it's not certain," Solomon told Reuters. "I could still see a scenario with a soft landing."

During an interview with CNBC's "Squawk Box," Solomon said it's time for corporate leaders and investors to understand the increasing risks — amid high inflation and the Federal Reserve's aggressive interest rate increases — and to prepare.

"I think you have to expect that there's more volatility on the horizon," Solomon told CNBC on Tuesday. "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."

JPMorgan Chase & Co. Chief Executive Jamie Dimon last week said the U.S. and the global economy could tip into a recession by the middle of the next year.

Rising inflation, interest rates hikes, and Russia's unprovoked attack on Ukraine are among the indicators of a potential recession, according to Dimon.

"These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they're likely to put the U.S. in some kind of recession six to nine months from now," Dimon said in an interview with CNBC.

President Joe Biden and his team are insisting a recession remains avoidable.

"I don't think there will be a recession," Biden told CNN. "If it is, it'll be a very slight recession. That is, we'll move down slightly."

During the summer, Bezos accused Biden of attempting "misdirection" by blaming gas companies for higher prices.

"Ouch. Inflation is far too important a problem for the White House to keep making statements like this. It's either straight ahead misdirection or a deep misunderstanding of basic market dynamics," Bezos tweeted on July 2.

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Billionaire Jeff Bezos, founder of Amazon, joined business leaders in warning that the U.S. is headed toward a severe recession.
jeff bezos, amazon, warns, recession, goldman sachs
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2022-31-19
Wednesday, 19 October 2022 12:31 PM
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