After Elon Musk’s declaration of employee cuts with a fear of economic crisis, the world’s wealthiest people warned of the dangers of the recession. However, not just Mr. Mask, the Chief Executives of US investment banks have also warned of the ongoing crisis in the global economy. Meanwhile, the CEO of Citigroup Inc. thinks that Europe, not the United States, is more likely to be in recession. So the article contains Europe Sees Higher Recession Risks Than U.S.A.
Jane Fraser, Chief Executive Officer of Citigroup, the third-largest bank in the United States, has recently traveled to Asia, Europe, and the Middle East. In this world tour, she has identified three main topics. First, interest rates, Russia, and the recession are essential factors in the current economy.
In Europe, Ms. Jane says energy issues have harmed several sectors in the region. Because of the high cost of electricity and fuel, some companies are being forced to close down. Considering these aspects, Europe is more likely to be in recession than the United States. Referring to the United States, he said the primary concern was that interest rates rather than recessions were the world’s largest economy. The recession is certainly not the main concern. However, it is not easy to avoid in light of the current situation.
Earlier, JPMorgan Chase Chairman and CEO Jamie Dimon described the US economy’s challenges as hurricanes. John E. Waldron, President of Goldman Sachs, described the current economic turmoil as the most challenging. Tesla’s Chief Executive also spoke out against the US economy.
“I don’t see a hurricane-like situation in the economy. But it is necessary to realize that the risk of recession has increased.” said Loretta J. Mester, President of the Cleveland Federal Reserve, part of the US Federal Reserve.
The central banks of other countries like the United States are also taking steps to raise interest rates to cope with inflation. Besides, the banks are imposing restrictions on the financial markets. Analysts believe that these measures will limit the tendency to borrow and pressure the already sluggish world economy.
In addition, the persistence of the ongoing Russian aggression in Ukraine is also a significant factor. This geopolitical crisis has pushed inflation worldwide to its highest level in decades and raises the risk of a recession in the world economy. Referring to the European Central Bank (ECB), Jane Fraser said that the ECBO, like the United States, was taking steps to raise interest rates to control inflation.
However, the US employment market was strong in May. The companies have hired more workers than expected and maintained a strong pace of wage growth. However, even after the possible sign of an economic crisis, the index in the capital market has fallen because investors fear that the central bank will continue its aggressive policy of raising interest rates in the face of decades of high inflation.
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