Citigroup CEO Jane Fraser warned that recession is more likely in Europe than in the US. Still, she stressed that it will not be easy for the U.S. to avoid recession.
Citigroup CEO on global recession
Citigroup CEO Jane Fraser warned on Friday about the health of the global economy, according to Reuters. Citi is the third largest and most global bank in the United States.
Speaking at an investor conference in New York, she discussed how the “three Rs” are affecting the global economy, saying She also stated that the three R’s are affecting the global economy: interest rates, Russia, and recession.
Fraser explained that the energy problems in Europe “are really affecting a lot of companies in certain industries that are now losing their competitive edge.” She added, “Due to electricity and energy costs, …… Some companies are shutting down operations,” she stated. The Citi executive opined.
felt that Europe was more likely than the U.S. to head into recession for sure.
Major central banks are already planning to raise interest rates to fight inflation and are preparing for the first round of global quantitative tightening. The move is expected to limit credit and put stress on an already slowing global economy.
Regarding the actions of the European Central Bank (ECB), Fraser said.
“I feel that the ECB is months behind the Fed in fighting inflation and does not have the flexibility that the U.S. has.”
In the U.S., Fraser said the problem is interest rates rather than recession. However, she noted that it would be difficult for the U.S. to avoid a recession, stating.
It is certainly not our base case that it will happen, but it is not easy to avoid either.
On Wednesday, JPMorgan&said Chase CEO Jamie Dimon said an economic “hurricane” was looming and advised investors to prepare for its impact.
John Waldron, president and chief operating officer of Goldman Sachs, warned of unprecedented economic shocks and more challenging times ahead.
Additionally, Tesla CEO Elon Musk said he had a “super bad feeling” about the economy, prompting President Joe Biden to respond. Musk also said we are likely in a recession that could last 12 to 18 months.
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