Amazon founder and billionaire Jeff Bezos warns that the US economy is likely to fall into a painful recession.
Bezos advises entrepreneurs and consumers to stock up on cash and put off large purchases until later.
The last time Bezos warned of a recession was in October, advising to “close the doors.”
Jeff Bezos, the founder of Amazon and the second richest person in the world, warns of a recession and advises both businesses and consumers to maintain stable cash reserves in the event of an economic downturn.
“The economic situation does not look that great at the moment,” Bezos said in an interview with American Radio.p. CNN on Saturday. And further: “The recovery is slowing down and we’ll see Repetition in many economic sectors. If we’re not already in a recession, we probably will be very soon.”
“Minimize risks as much as possible”
Bezos recommends that American households hold off on big purchases such as new televisions, refrigerators, cars, and the like. Because the economic situation threatens to deteriorate. At the same time, small businesses should defer new investments in equipment and build up their cash reserves, Bezos says.
He recommends preparing for an economic disaster. At the same time, the Amazon founder and former CEO refuses to predict the length of the recession. “Minimize the risks as much as possible. Hope for the best, but prepare for the worst,” this is the advice of a leading online retailer.
Bezos’ comments are consistent with his previous comments tweet In October, commenting on an interview with David Solomon, CEO of Goldman Sachs. “Yes, the prospects for this economy are closing the doors,” Bezos wrote in response to Solomon’s recessionary sentiment.
It also appears that current Amazon CEO Andy Jassy shares Bezos’ concerns. for months Amazon reduces its costscuts spending and keeps one for certain positions in the company Hiring freeze I entered. With such actions, the group is preparing for an economic downturn.
Bezos recommends building stable cash reserves
Many academics, managers, investors, and stock watchers sounded the alarm this year, and before A Recession warned. It is indicated by raising interest rates by the US Federal Reserve, which should curb inflation. The inflation rate in the United States reached 9.1 percent in June, the highest level in 40 years. In spite of Fed efforts, which raised the key interest rate from almost zero to 3.75 to 4.0 percent, inflation fell only slightly and settled at 7.7 percent in October. The last time the key interest rate was over five percent was in 2007.
The bottom line is that US consumers are likely to contend with rising prices and rising borrowing costs in a shrinking economy. To survive the dire situation, Bezos recommends keeping steady cash reserves.
This article was translated from English by Amin Al-Maghribi. You can find the original over here.
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