Hilton CEO Chris Nassetta has witnessed a number of Federal Reserve interest rate cycles over the past 15 years as the hotelier’s CEO.
The long-time leader remains hopeful that the latest – which focuses on aggressive rate hikes to weather 40 years of high inflation – will result in a decent landing for the once-too-hot US economy.
“My own view is there’s a pretty good chance we’ll get a decent one [economic] Landing, which is kind of a soft to bumpy landing with the economy,” Nassetta said Monday at the Yahoo Finance All Markets Summit.
Some business leaders would argue that the Fed has already initiated a hard economic landing due to years of extremely low interest rates.
“Unfortunately yes [the Fed would be OK with a recession]said BMO economist Jennifer Lee on Yahoo Finance Live. “And the Fed has softened its tone a bit over the past two months. Earlier they said they could probably do this and achieve a softish [economic] Landing. But now they have already said that there will be pain. And it’s unfortunate, but that’s what happens when a central bank tightens aggressively.”
The US dollar has surged against its foreign counterparts, boosting the quarterly sales of large multinationals such as Nike (NIKE) and FedEx (FDX). Mortgage rates have risen to almost 7%, dampening demand for homes. And economic growth – as measured by gross domestic product (GDP) – declined in the first half of the year.
Meanwhile, the Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) remain in double-digit percentage declines for the year.
For its part, Hilton raised its full-year guidance back in January on strong leisure travel and rising corporate demand.
Despite rising interest rates, Nassetta still sees a litany of encouraging trends in business into 2023.
“I would say we are at the dawn of what I believe will be a new golden age of travel,” added Nassetta.
Brian Soci is a freelance editor and Anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and further LinkedIn.
For the latest stock market news and in-depth analysis, including events moving stocks, click here
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance App for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, flipboard, LinkedInand youtube