Almost all CEOs say they’re preparing for a recession in the United States, a recent poll shows.
When asked about economic conditions over the next 12-18 months, 98 percent of CEOs in the most recent Measure of CEO Confidence Conference Board survey said they were preparing for a US recession.
Most CEOs, however, believed America’s recession would be “short and shallow.”
Most CEOs also observed that demand for their company’s products or services has increased or remained stable over the past three months.
The survey was conducted between September 19 and October 3 with 136 CEOs taking part.
CEO confidence has fallen to its lowest level since the Great Recession, said Dana Peterson, chief economist for the Conference Board.
“However, despite expectations of slow growth, tight labor market conditions and wage pressures remain, while hiring plans have remained robust,” he said.
Political and governmental instability, energy access and security, and the ongoing Russia-Ukraine conflict were named by CEOs as the top three global challenges.
Fed: Economic slowdown will help reduce inflation
US annual inflation, which is mainly driven by high rents, food prices and medical costs, remained elevated at 8.2 percent in September.
Although it is not clear whether the Federal Reserve will raise interest rates further, the central bank is likely to maintain its current tightening monetary policy.
Participants at the September joint meeting of the Federal Open Market Committee (FOMC) and the Board of Governors of the Federal Reserve System suggested that higher interest rates remain in place for longer.
Monetary policy supervisors will also continue to reduce their securities holdings over time.
“Many participants pointed out that once the policy rate has reached a sufficiently restrictive level, it would probably be appropriate to maintain that level for some time pending convincing evidence that inflation is on the way to the 2 percent target to return,” said the FOMC minutes.
A period of below-trend real GDP growth would help ease inflationary pressures and help the economy meet targets of maximum employment and price stability, policymakers said.
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Allen Zhong is a longtime writer and reporter for The Epoch Times. He joined Epoch Media Group in 2012. His main focus is US politics. Send him your story ideas: [email protected]
