Do US CEOs Foresee an Economic Recession?
Summary from the AllSides News Team
Inflation is frustrating consumers and fueling fears of a potential economic recession for some. How do America's CEOs view the situation?
"Right now, it's kind of sunny, things are doing fine," JPMorgan Chase CEO Jamie Dimon said at a banking conference Tuesday. "Everyone thinks the Fed can handle this. That hurricane is right out there down the road coming our way. We just don't know if it's a minor one or Superstorm Sandy." Last week, Morgan Stanley CEO James Gorman put the odds of a recession at under 50%. When asked on Twitter if he predicts a recession, Tesla and SpaceX CEO Elon Musk wrote, "Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen."
According to Investopedia, a financial advice and research website, "nearly 60% of surveyed CEOs expect inflation will come down over the next few years. However, they also believe that the Fed’s interest rate hikes will cause a brief recession."
Reports across the spectrum have focused on CEOs' economic predictions and the potential for a recession. Most reports also quoted voices who said a recession could provide a good economic shakeup. Many reports from the right and some from the center and left framed CEO confidence in the economy as weak, highlighting inflation as a primary reason. Another report from Yahoo News conveyed a different framing, focusing on CEOs who countered Dimon's comments with more optimistic outlooks.
Featured Coverage of this Story
From the Right
‘Plan for the Worst’: CEO Confidence Wanes as Corporate America Prepares for RecessionCEO confidence in the U.S. economy is waning as survey results and comments from top executives suggest a dim outlook.
The Conference Board’s second-quarter measurement of CEO sentiment revealed that 57 percent anticipate the economy to go through a “very short, mild recession.” This represented the fourth consecutive quarter of declining expectations.
According to the business research group’s regular survey, 61 percent of CEOs noted that general economic conditions were worse compared to six months ago, while 37 percent stated that conditions in their own industries were worse.
“CEO confidence weakened further in the...
From the Center
Dimon says brace for U.S. economic 'hurricane' due to inflationJamie Dimon, Chairman and Chief Executive of JPMorgan Chase & Co (JPM.N) described the challenges facing the U.S. economy akin to an "hurricane" down the road and urged the Federal Reserve to take forceful measures to avoid tipping the world's biggest economy into a recession.
Dimon's comments come a day after President Joe Biden met with Federal Reserve Chair Jerome Powell to discuss inflation, which is hovering at 40-year highs.
"It's a hurricane," Dimon told a banking conference, adding that the current situation is unprecedented. "Right now, it's kind of sunny, things...
From the Left
How Jamie Dimon's 'hurricane' warning compares to what other big-time CEOs are sayingJP Morgan CEO Jamie Dimon sent shockwaves through markets and C-suites on Wednesday in a free-wheeling interview at an investment banking conference.
Speaking at a conference sponsored by AllianceBernstein Holdings, Dimon said that the U.S. economy is facing a "hurricane" as the Federal Reserve continues its process of normalizing interest rates.
"Right now, it's kind of sunny, things are doing fine," Dimon told the conference. "Everyone thinks the Fed can handle this. That hurricane is right out there down the road, coming our way. We just don't know if it's a minor...
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