Commenting on the state of the economy on Tuesday, Amazon founder Jeff Bezos warned it’s time to “shut the hatches” as a recession looms.
“Yes, the odds in this economy are telling you to shut the hatches,” Bezos said on Twitter.
The founder of the online retail giant shared this a video by the CEO of Goldman Sachs David Solomon urged business owners to be cautious and “expect more volatility on the horizon.”
Bezos’ alarm bells join a growing number of prominent voices warning that a recession may be looming.
JPMorgan Chase CEO Jamie Dimon predicted on Monday that the US will fall into “some kind of recession” before the end of next year.
A Wall Street Journal poll released Monday found nearly two-thirds of economists believe a recession will happen next year, and a recent KPMG poll found nearly 9 in 10 global CEOs expect the same.
Earlier this month, the United Nations warned that efforts by the US and other countries to control high inflation could plunge the world economy into a global recession, and heads of the International Monetary Fund and World Bank reiterated that the danger is real.
And while a recession is measured by two consecutive quarters of economic contraction, the United States has experienced one defining feature that has forecasters thinking: a hot job market.
“You just can’t call it a recession when the vacancy-to-unemployment ratio is at an all-time high. I mean, this is so far from a recession,” Jeffrey Frankel, a former member of the National Bureau of Economic Research, the agency that labels recessions, told The Hill.
The US Federal Reserve and other central banks have attempted to stem high inflation with aggressive rate hikes, prompting fears the effort could inadvertently plunge the US economy into recession.
Part of the Fed’s economic policy is aimed at tightening the labor market, a strategy designed to combat high prices.
The Alliance’s chief economic adviser, Mohammed El-Erian, has said that the US in particular is headed for a “harmful recession that was entirely avoidable.”
Contrary to Bezos’ warnings on Tuesday, President Biden said earlier this month he doesn’t think Americans should prepare for a recession and that if the country does face one, it will be “very minor.”