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Top CEOs Bracing for an Economic Recession

A rising number of CEOs are warning of an impending Economic slowdown as the Federal Reserve moves to contain sky-high inflation with a series of aggressive interest rate rises. As they race to catch up with rising inflation, Fed officials authorised a 75-basis-point interest rate boost last week, the first since 1994, increasing the federal funds target range to 1.5 percent to 1.75 percent. Following the meeting, Chairman Jerome Powell informed reporters that another rate rise of that scale might be considered in July, citing persistently strong inflation as a reason, leading investors to rethink the Economic outlook.

Officials also outlined an aggressive rate hike plan for the rest of the year. Interest rates are expected to reach 3.4 percent by the end of 2022, according to new Economic predictions revealed following the two-day conference. This would be the highest level since 2008.Increased interest rates lead to higher charges on consumer and commercial loans, slowing the economy by causing businesses to cut down on expenditure.

Mortgage rates are now nearing 6%, the highest level since 2008, and some credit card providers have increased their rates to 20%. In response to a tweet at the end of May, the world’s wealthiest man stated that he believes the economy is headed for a recession, but that there is a silver lining.Tesla CEO Elon Musk tweeted, “This is actually a positive thing.” “For far too long, it has been pouring money on idiots. Some bankruptcies are unavoidable. Furthermore, all of the Covid stay-at-home material has led people to believe that you don’t need to work hard.

A rude awakening is on the way!” JPMorgan Chase CEO Jamie Dimon gave a grave warning about the status of the US economy in early June, saying that consumers should brace for an approaching “storm” brought on by a more hawkish Federal Reserve, rising inflationary pressures, and Russia’s invasion of Ukraine.The CEO of the world’s largest bank had already warned that storm clouds were developing on the horizon, but he increased his warning after indicators that rising inflation might be painfully slow to decline.

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