Citigroup CEO Jane Fraser warns {that a} recession is extra seemingly in Europe than within the U.S. Nonetheless, she careworn that it’s not simple for the U.S. to keep away from a recession.
Citigroup’s CEO on World Recession
Citigroup CEO Jane Fraser warned in regards to 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 numerous 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 government opined:
Europe undoubtedly felt extra more likely to be heading right into a recession than you see within the U.S.
Main central banks are already planning rate of interest hikes to battle in opposition to inflation, getting ready for the primary spherical of worldwide 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 stated: “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 stated the query is extra about rates of interest than recession. Nevertheless, she famous that it is going to be troublesome for the U.S. to keep away from a recession, stating:
It’s actually not our base case that it is going to be, but it surely’s not simple to keep away from both.
On Wednesday, JPMorgan & Chase CEO Jamie Dimon stated an financial “hurricane” is coming our approach, advising traders to brace for affect.
Goldman Sachs President and Chief Working Officer John Waldron warned of unprecedented financial shocks and harder instances forward.
Moreover, Tesla CEO Elon Musk stated he has a “tremendous unhealthy feeling” in regards to the economic system, prompting President Joe Biden to reply. Musk additionally stated we’re seemingly in a recession that would final 12 to 18 months.
What do you consider this the feedback by Citigroup’s CEO? Tell us within the feedback part under.
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