Citigroup CEO: Europe More Likely to Head Into Recession Than US

Citigroup CEO Jane Fraser warns {that a} recession is extra seemingly in Europe than within the U.S. Nonetheless, she confused that it isn’t straightforward for the U.S. to keep away from a recession.

Citigroup’s CEO on Global Recession

Citigroup CEO Jane Fraser warned concerning the well being of the worldwide economic system Friday, Reuters reported. Citi is the third-largest and most globally-focused U.S. financial institution.

Speaking at an investor convention in New York, she talked about how “the three Rs” are affecting the worldwide economic system, stating: “It’s charges, it’s Russia, and it’s recession.”

Fraser defined that Europe’s vitality issues are “actually having an affect on numerous corporations in sure industries that aren’t even aggressive proper now.” She added that “a few of them are shutting down operations … due to the price of electrical energy and the price of vitality.” The Citi government opined:

Europe positively felt extra more likely to be heading right into a recession than you see within the U.S.

Major central banks are already planning rate of interest hikes to struggle towards inflation, getting ready for the primary spherical of world quantitative tightening. The transfer is anticipated to limit credit score and add stress to an already-slowing world economic system.

Commenting on the European Central Bank (ECB) motion, Fraser stated: “It feels just like the ECB is just a few months behind the place the Fed has been in getting its arms round inflation and with out fairly the identical flexibility that U.S. has.”

In the U.S., Fraser stated the query is extra about rates of interest than recession. However, she famous that it will likely be tough for the U.S. to keep away from a recession, stating:

It’s definitely not our base case that it will likely be, nevertheless it’s not straightforward to keep away from both.

On Wednesday, JPMorgan & Chase CEO Jamie Dimon stated an financial “hurricane” is coming our method, advising traders to brace for affect.

Goldman Sachs President and Chief Operating Officer John Waldron warned of unprecedented financial shocks and harder occasions forward.

Furthermore, Tesla CEO Elon Musk stated he has a “super bad feeling” concerning the economic system, prompting President Joe Biden to reply. Musk additionally stated we’re seemingly in a recession that would final 12 to 18 months.

What do you consider this the feedback by Citigroup’s CEO? Let us know within the feedback part under.