Citigroup CEO Jane Fraser warns {that a} recession is extra probably in Europe than in the U.S. Nonetheless, she pressured that it’s not straightforward for the U.S. to keep away from a recession.
Citigroup’s CEO on International Recession
Citigroup CEO Jane Fraser warned concerning the well being of the worldwide economic system Friday, Reuters reported. Citi is the third-largest and most globally-focused U.S. financial institution.
Talking at an investor convention in New York, she talked about how “the three Rs” are affecting the worldwide economic system, stating: “It’s charges, it’s Russia, and it’s recession.”
Fraser defined that Europe’s power issues are “actually having an affect on a lot of firms in sure industries that aren’t even aggressive proper now.” She added that “a few of them are shutting down operations … due to the price of electrical energy and the price of power.” The Citi govt opined:
Europe undoubtedly felt extra prone to be heading right into a recession than you see in the U.S.
Main central banks are already planning rate of interest hikes to combat in opposition to inflation, making ready for the primary spherical of world quantitative tightening. The transfer is predicted to limit credit score and add stress to an already-slowing world economic system.
Commenting on the European Central Financial institution (ECB) motion, Fraser mentioned: “It feels just like the ECB is just a few months behind the place the Fed has been in getting its arms round inflation and with out fairly the identical flexibility that U.S. has.”
Within the U.S., Fraser mentioned the query is extra about rates of interest than recession. Nevertheless, she famous that will probably be troublesome for the U.S. to keep away from a recession, stating:
It’s actually not our base case that will probably be, however it’s not straightforward to keep away from both.
On Wednesday, JPMorgan & Chase CEO Jamie Dimon mentioned an financial “hurricane” is coming our method, advising traders to brace for affect.
Goldman Sachs President and Chief Working Officer John Waldron warned of unprecedented financial shocks and more durable occasions forward.
Moreover, Tesla CEO Elon Musk mentioned he has a “tremendous dangerous feeling” concerning the economic system, prompting President Joe Biden to reply. Musk additionally mentioned we’re probably in a recession that might final 12 to 18 months.
What do you consider this the feedback by Citigroup’s CEO? Tell us in the feedback part under.
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