Jeff Bezos, the founder of Amazon, has added his voice to the chorus of people predicting trouble for the US economy.
The billionaire claimed on social media that the economy was telling people to “batten down the hatches.”
In the US, growth has already slowed for two consecutive quarters, a development that in many other nations but not in the US is regarded as a recession.
Numerous economists anticipate a further slowdown as a result of the US central bank raising interest rates to combat increasing costs.
Recently, US President Joe Biden was compelled to address the matter due to the constant uproar of worry.
He stated last week in an interview, “There won’t be a recession, in my opinion. If so, the recession will be quite small.
A group of economists in the US is tasked with announcing the official beginning and conclusion of recessions. Along with the gross domestic product, they consider a variety of other factors when coming to their conclusion.
Mr. Biden has attempted to argue that the slowing in economic activity is a healthy change from the GDP spurt that preceded the pandemic lockdowns in light of the impending midterm elections in November.
The economy continues to create a lot of jobs; unemployment is low, and household finances are generally in good shape.
But as inflation has continued to rise above the 2% target, hitting 8.2% last month, optimism that policymakers can address the problem without causing a potentially severe downturn has diminished.
As borrowing costs approach 7%, the highest rate since 2002, the US housing sector, which some estimates say makes up 15% of the economy, has already slowed significantly. This has led to job cuts at banks and other real estate companies.
Amazon has also been dealing with a slowdown in its e-commerce operations; it will update investors later this month. It announced a slowdown in hiring and stated it was trying to save costs.
Despite leaving his position as CEO of Amazon last year, Mr. Bezos is still the company’s board chairman. He has previously criticised the president’s economic strategies, accusing Mr. Biden of being dishonest about the factors influencing price increases.
