- Some of America’s top CEOs predict: economy heading towards recession.
- Elon Musk Advise businesses with capital reserves to make it through “irrational times”.
A recession is approaching. At least some of the country’s top executives are saying so.
Elon Musk in recent weeks David Solomon It is starting to sound the alarm that an economic downturn is imminent. In fact, CEO confidence has fallen to its lowest level since the pandemic began. Latest Survey from Conference Boardbusiness research group.
According to a survey that collected responses from 133 CEOs, mostly public companies, from April 25 to May 9, the majority of CEOs believed the Fed’s plan to curb inflation through rate hikes was minimal, but believed it would trigger a recession. turned out to be
The conference board’s chief economist, Dana M. Peterson, said in a statement that management’s outlook for the future was “gloomy.” 60% of leaders expect the economy to deteriorate over the next six months.
Here’s what management has to say about a possible recession and advice on how to prepare.
Elon Musk believes we are already in a recession.
According to Tesla And space X CEO, America is already in recession and things are about to get worse.
“If the boom lasts too long, capital tends to be misallocated,” he said at the Miami tech conference All-In this week. “Basically, money starts pouring into idiots.”
Musk said that the economic situation he describes is characterized as when people “do stupid things and do things that aren’t useful to their fellow humans.”
Musk’s advice on how to deal with a recession? Create useful products and make sure your company makes sense.
“From a capital point of view, we have to make sure we don’t get too close to the edge,” he added, adding that capital reserves are needed to overcome “irrational times.”
David Solomon of Goldman Sachs is calling attention.
that much Goldman Sachs The CEO estimates there is a 30% chance of a recession over the next 12 to 24 months, He told CNBC’s Andrew Ross Sorkin on Wednesday..
“At some point we have a reasonable chance of going into a recession or showing very slow, slow growth,” he said.
His advice to fellow executives is to consider your risk appetite and prepare for a recession.
“That doesn’t necessarily mean that’s going to happen, but I definitely think if you’re running an important company, you should look into the lens a little more carefully than you do now. We were sitting here a year ago.”
Wells Fargo CEO said ‘There is no doubt’ about the recession.
Recession will be “difficult to avoid” Wells Fargo CEO Charles Sharp.
“The Fed says the economy is too hot and should slow economic growth. Interest rates will go up, and it will change the health of consumers and businesses over a period of time.” Sharp said Tuesday during the Wall Street Journal’s Future of Everything festival.
That said, Scharf believes that many businesses are entering a recession where they benefit from resilience.
“The fact that everyone is so strong, I hope we can provide a short, not-so-deep buffer in any recession,” he said.
Lloyd Blankfein urges everyone to be thoroughly prepared for a recession.
“The US economy is currently at “very, very high risk” of a recession,” said Lloyd Blankfein, senior chairman of Goldman Sachs. CBS ‘Face Nation’ On sunday.
However, while remaining optimistic, Blankfein praised the Fed’s response and “a powerful tool” it could use to avoid a recession.
To this end, he advises to be prepared but not panic.
“If I were running a big company, I would be very prepared for that. If I were a consumer, I would be very prepared for that,” he said. “But not baked in a cake.”