- KPMG survey found that 91% US CEOs believe there will be recession over the next 12 month. Survey.
- Many major companies are taking action because of the economic uncertainty. announce lay-offsAnd Hiring freezes
- Here are 2023 predictions by CEOs from 10 of America’s most prestigious companies, including FedEx and Tesla.
Everyone is trying to figure what’s happening in the US economy as the New Year draws near.
Joe Biden declared the economy “strong and strong as hell” this weekend. Many top US economists and executives disagree with his assertion. A recent Survey by big four tax advisory firm KPMG, 91% of CEOs said they anticipate a US recession in the next 12 months — and only one-third believe it will be “mild and short.”
Jerome Powell, Federal Reserve Chair insists that Powell’s recent interest-rate hike will not trigger a recession. But the Fed’s Do your own researchHe warns that similar moves historically have resulted in a rise of unemployment.
Economists surveyed by Following the Rate Increase The Wall Street Journal rated, on average, that the probability of a recession within the next 12 months is 63% — up from an average probability of 49% in July. One statistical model is also available. Bloomberg Economics says there’s a 100% chance that the US economy will tip into a recession within a year.
Things are generally not too bad right now. However, many smart people suggest that you wait. In 2023, things are going to get really bad.
A recession could have a wide-ranging impact on the average person, especially in terms of their employment situation. Workers have enjoyed a thriving economy for many years. Historic amount of bargaining powerThe trend towards a reversal is expected to occur during the pandemic, when companies scrambled for labor. In order to combat inflation, the Fed is going to increase interest rates. This will cause businesses to pay more. If they don’t, they’ll start to cut staff. This will lead to a reduction in workforce. Numerous layoffs, and higher levels of unemployment. These interest rates mean that loan and credit card debt will become more expensive.
Elon Musk, Tesla CEO, is predicting a mild recession for 18 months. Gary Friedman CEO of Restoration Hardware said that “anybody who believes we’re not experiencing a recession in crazy.” Here’s what 10 top business leaders in the country are anticipating for 2023.
Tesla CEO Elon Musk
The world’s most powerful man believes that making macroeconomic prognostications can lead to disaster. However, he shared his thoughts at a shareholder meeting in July. He said that he believed the US would become a “remedy for disaster”. For 18 months, we will see a mild downturn. Musk had told Tesla executives a month prior that he was “super negative” about the economy. He instructed them to follow his lead. Stop hiring and reduce 10% of your staffAccording to internal emails viewed and verified by Reuters, the answer is “Yes.”
Musk Tell investorsIn October, the Fed stated that “North America’s in pretty good health”, but they reacted to the Fed’s decision not to raise interest rates.
He stated that there was more inflation than deflation. “The Fed’s decisions are logical if you look through the rearview mirror. But not if your eyes are looking out the windshield.”
FedEx CEO Raj Subramaniam
Subramaniam, a Subramaniam spokesperson for CNBC, said that the shipping giant had reported disappointing September earnings. He believes we are heading towards a “worldwide depression.”The company announced aggressive cost-cutting measures that included closing 90 retail locations and five corporate office offices as well as freezing employment.
Gary Friedman, CEO Restoration Hardware
RH’s earnings report in September was a reminder that the luxury furniture boss stated that “anyone who thinks we aren’t in a slump is crazy.” He said that the next 12-18 months would be turbulent and that the downturn was “just getting started.”
Hilton CEO Chris Nassetta
The hospitality veteran is slightly less optimistic. Nassetta In mid-OctoberHe believes that there is a “reasonably high chance” that the economy will experience a “soft-to bumpy landing.” The July executive Tell investorsHe said that although there is “a lot of macro uncertainty”, he is optimistic about the future of the hotel giant.
Robert Nardelli was the former Chrysler CEO and Home Depot CEO
Since months, Nardelli has warned of a “rocket ship” recession in the USA. TellingFox News Tuesday stated that the nation is not prepared for the worst recession he has ever seen.
JP Morgan CEO Jamie Dimon
Perhaps Dimon is the most vocal of all the recession soothsayers. He predicted that there would be a 20-30% chance of a recession. There is a 20-30% chance that “something worse” will happen.Recently, he forecasted that the downturn will be less severe than previously thought. Economic “hurricane”.He had been warned. In his most recent earnings report, he noted that people’s savings have increased in comparison to last year and are even higher than before COVID. He said that credit card borrowing is also stable.
He said that the extra money they have in checking accounts will likely run out by mid-year next. You also have inflation, higher rates of interest, higher mortgage rates as well, and volatility, along with war. So, those things are out there and that – it’s not a crack in current numbers. It is predictable that future numbers will be affected by it.
David Solomon, CEO of Goldman Sachs
The investment firm head offered a similar warning to Dimon, saying that the “global economy continues to face significant headwinds.”
During the company’s October third quarter earnings call, he stated that equity markets were “well off recent highs”, central banks raising interest rate and geopolitical instability had all been exacerbating factors in Sachs’ performance over the past few months.
“I believe you should expect more volatility in the near future.” “That doesn’t mean that we don’t have a really challenging economic scenario,” he said. TelledCNBC, October. However, the distribution of outcomes suggests that there is a high chance of a US recession.
Citadel CEO Ken Griffin
“Everybody loves to predict recessions, and they will occur,” says Citadel’s billionaire CEO. TelledCNBC, late September, noting that he thinks inflation has peaked. It’s only a matter of when and, frankly, how difficult. Is it possible to land on a hard ground at the end ’23? Absolutely.”
Deutsche Bank CEO Christian Sewing
Sewing, who has an investment company in Germany, preempted the resignation by his government. TelledCitizens should be prepared for a recession.
Sewing stated, “We won’t be able to avert the recession in Germany.” September “Yet we believe that our economy is resilient enough to cope well with this recession — provided the central banks act quickly and decisively now.”
Microsoft CEO Satya Nadella
Microsoft is a name that people have used to call “microsoft”.recession-proof“Before, the technology giant was taking a big hit. It laid off almost 1,000 workersIn late October, Microsoft announced an unusually large series of layoffs. Microsoft’s stock has also declined 29%Since January, together with many other tech companies. CEO Satya Nadella stated in an interview that none of us is immune to macroeconomic headwinds. InterviewYahoo Finance, October. We stress that we are in a time when every company has to do more with less.
