Amazon founder Jeff Bezos has become the latest corporate leader to warn about the state of the economy, warning that tougher times may be ahead.
In a tweet posted, the former president and CEO of the online retail giant echoed comments made by Goldman Sachs Chief Executive David Solomon to CNBC.
Bezos stated in his comments that, the probability that the economy will experience difficult times is there. Earlier, Solomon, head of the Wall Street financial giant, said it was time for both corporate leaders and investors to understand the growing risks, and prepare accordingly.
Solomon spoke after his firm just posted quarterly earnings results that beat Wall Street estimates. But he said a recession is likely when the economy is dealing with persistently high inflation and the Federal Reserve is trying to lower prices through a series of aggressive interest rate hikes.
Even so, he also gave some relief by saying that "that does not mean that we have a very difficult economic scenario. But in terms of income distribution, there is a good chance that we have a recession in the United States.” Joe Biden in another speech stated that the United States economy is very strong.
Fed officials have also warned that a recession may occur as a result of tightening monetary policy, although they hope to avoid a recession. Policymakers in September estimated that gross domestic product would grow just 0.2% in 2022 and recover in 2023, but to just 1.2%. GDP contracted in the first and second quarters of the year, meeting the commonly held definition of a recession.
There have been various signals lately from corporate leaders.
JPMorgan Chase CEO Jamie Dimon has warned of trouble ahead, saying recently that the situation is "very, very serious" and that the U.S. could slip into recession in the next six months.
However, Bank of America CEO Brian Moynihan said that credit card data and related information show that consumer spending has held up.
