Cardi B isn’t the only one. The economy is also causing concern among the CEOs of some of the country’s largest corporations.
The predictions of a recession, which include Tesla CEO Elon Musk and JPMorgan Chase CEO Jamie Dimon, show the tremendous anxiety felt in the country’s top offices as inflation reaches its highest annual pace in over 40 years.
On Tuesday, the Federal Reserve will begin its two-day meeting. Most economists expected the central bank to raise interest rates by a half-point for the second month in a row, but a stronger-than-expected inflation report last week has markets anticipating a bigger rise.
As inflation continues to rise, the central bank is almost certain to keep hiking interest rates substantially in the coming months.
The Fed is engaged in a delicate dance that could result in significant economic harm.
The Federal Reserve intends to slow the US economy just enough to keep inflation in check without causing a significant downturn.
However, saying it is often simpler than doing it. As the cost of borrowing rises across the board, from mortgages to bank loans, businesses and individuals may respond by cutting costs or workers, while individuals may begin to cut back on their expenditures.
Dimon, the CEO of one of the world’s major banks, has predicted an economic “storm.”
During a recent investing conference, he said, “Everyone thinks the Fed can manage this.”
“That hurricane is right around the corner, heading our way. We don’t know if it’s a modest storm, or if it’s Superstorm Sandy, Andrew, or something like that. And you’d better get ready.”
Musk is concerned as well.
After purportedly expressing in an internal email this month that he had a “very awful feeling” about the economy, he announced intentions to slash the number of salaried employees at Tesla by 10%.
