Here’s What Billionaires Are Saying About The Next Recession

The new date is Jun 21, 2022.

Multiple billionaires are now predicting a recession in the U.S. economy before the end of next year.

In an interview on Tuesday, the world's richest person said that a recession is inevitable at some point and that it will be more likely than not.

In an interview with Fareed Zakaria, Bill Gates said that he agreed with the bears that the world is heading towards an economic slowdown in the near future.

The JP Morgan CEO warned of an economic "hurricane" fueled by the conflict in Ukraine and high inflation and said his bank is preparing for "bad outcomes."

In an interview with CNBC back in March, Carl Icahn blamed high inflation and questioned if the Fed could engineer a soft landing for the economy.

The founder and CEO of Citadel said in May that the Fed will need to hit the brakes on inflation if it stays around 8.5%.

In his company's quarterly earnings call in March, Gary Friedman mentioned the movie "The Big Short" and said the US economy was facing one of its most difficult periods since the 2008 Great Recession.

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Since the Federal Reserve raised interest rates last week, there has been an increase in warnings about an impending recession. The Labor Department reported a higher-than- expected annual inflation figure of 8.6% in May. The country has seen increases in consumer prices over the last 40 years.

Contra

In an interview with the Associated Press on Sunday, President Joe Biden insisted that a recession was not "inevitable." The president said that the US was in a better position to fight high inflation than other countries. The Treasury Secretary said on Sunday that the economy is not likely to go into a recession. She said that bringing down inflation was the top priority of the Biden administration.

Tangent

Several major financial institutions and business leaders have warned about an upcoming recession, as well as billionaires. Goldman increased its forecast to a 30% chance of a recession over the next year. A day earlier, a Japanese investment bank warned that there was a chance of amild recession by the end of the year. The first bank to project an upcoming recession at the end of 2023,Deutsche Bank revised its forecast on Friday saying it now expects an earlier and more severe recession. According to the German investment bank, the GDP will contract in the third quarter of 2023. The chief economist at Moody's said in a recent note that the risks of a recession were "uncomfortably high." Both Morgan Stanley CEO James Gorman and Wells Fargo CEO Charles Scharf think there will be a recession but neither thinks it will be very deep or long. The CEO of Ark Capital criticized the Fed's rate hike and suggested the U.S. could already be in a recession.

Another major international bank predicts a recession in the U.S.

There is a chance that the U.S. recession is more likely in the near term.