- Jeff Bezos has warned that the US economy is likely to languish in a painful recession.
- Amazon’s billionaire founder has advised consumers and businesses to delay purchases and stockpile cash.
- Bezos recently hinted that it’s time to “break the hatch.”
Jeff Bezos has warned of a looming US recession and advised consumers and businesses to stockpile cash in case a catastrophic recession strikes.
Amazon’s billionaire founder and executive chairman told CNN on Saturday, “The economy doesn’t look good right now.
“Things are slowing down and we are seeing layoffs in so many areas of the economy,” he continued. Stated.
Bezos has recommended that American households delay big purchases such as new TVs, refrigerators and cars, given the risk of worsening economic conditions. Similarly, he suggested that small business owners consider postponing investments in new equipment and build cash reserves instead.
The e-commerce pioneer avoided predicting how long the recession would last, but urged people to prepare for an economic catastrophe.
“Take as many risks as you can off the table,” he said. “Hope for the best, prepare for the worst.”
Bezos’ latest comments echo his reaction in October when Goldman Sachs CEO David Solomon said a US recession was likely.
“Yeah, this economic potential shows us breaking the hatch,” Bezos tweeted at the time.
Andy Jassy, who succeeded Bezos as Amazon CEO last summer, appears to share his predecessor’s fears of a recession. Amazon has been cutting costs, curbing spending and freezing certain job openings in recent months, likely in preparation for a tougher economic environment.
Leading investors, managers, academics and analysts have warned of a recession this year. They point to the Federal Reserve’s efforts to combat inflation, which surged to a 40-year high of 9.1% in June and remained at 7.7% in October.
The US central bank has rushed to cool the economy and ease upward pressure on prices by raising interest rates. It raised it from near zero in March to a range of 3.75% to 4% today, signaling that it could exceed 5% for the first time since 2007.
As a result, US consumers and businesses may have to weather higher prices, skyrocketing borrowing costs, and a contracting economy. Bezos seems to recommend stockpiling cash to help them weather that painful squeeze.
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