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

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

Citigroup CEO Jane Fraser warns that a recession is more likely in Europe than in the U.S. Nonetheless, she stressed that it is not easy for the U.S. to avoid a recession. Citigroup’s CEO on Global Recession

Citigroup CEO Jane Fraser warned about the health of the global economy Friday, Reuters reported. Citi is the third-largest and most globally-focused U.S. bank.

Speaking at an investor conference in New York, she talked about how “the three Rs” are affecting the global economy, stating: “It’s rates, it’s Russia, and it’s recession.”

Fraser explained that Europe’s energy problems are “really having an impact on a number of companies in certain industries that are not even competitive right now.” She added that “some of them are shutting down operations … because of the cost of electricity and the cost of energy.” The Citi executive opined: Europe definitely felt more likely to be heading into a recession than you see in the U.S.

Major central banks are already planning interest rate hikes to fight against inflation, preparing for the first round of global quantitative tightening. The move is expected to restrict credit and add stress to an already-slowing world economy.

Commenting on the European Central Bank (ECB) action, Fraser said: “It feels like the ECB is a few months behind where the Fed has been in getting its arms around inflation and without quite the same flexibility that U.S. has.”

In the U.S., Fraser said the question is more about interest rates than recession. However, she noted that it will be difficult for the U.S. to avoid a recession, stating: It’s certainly not our base case that it will be, but it’s not easy to avoid either.

On Wednesday, JPMorgan & Chase CEO Jamie Dimon said an economic “hurricane” is coming our way, advising investors to brace for impact.

Goldman Sachs President and Chief Operating Officer John Waldron warned of unprecedented economic shocks and tougher times ahead.

Furthermore, Tesla CEO Elon Musk said he has a “super bad feeling” about the economy, prompting President Joe Biden to respond. Musk also said we are likely in a recession that could last 12 to 18 months. Tags in this story Citi, citi inflation, citi recession, CitiBank, citibank recession, CitiGroup, citigroup inflation, citigroup recession

What do you think about this the comments by Citigroup’s CEO? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Lawsuit Claims US Labor Department"s Crypto Guidance Is Unlawful REGULATION | 6 hours ago 105 Countries Are Exploring Central Bank Digital Currencies, CBDC Tracker Shows REGULATION | 19 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleLawsuit Claims US Labor Department’s Crypto Guidance Is Unlawful Next articleBitso Partners With Addem Capital to Provide Cryptocurrency Investment Instruments in Latam Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether