The world economy is in the garbage – Everybody knows that. But this latest admission by two major CEOs puts the situation in a whole different perspective and it’s alarming.
According to FedEx CEO Raj Subramaniam, a recession is looming for the global economy.
CNBC writes, As a result of FedEx’s first quarter revenue and earnings miss, the CEO was pessimistic. In addition, the company retracted its full-year guidance. On Thursday, FedEx shares fell 15% in extended trading.
FedEx’s disappointing results were attributed to weakening global shipment volumes, according to the company’s chief executive, who assumed his role earlier this year. He said that despite anticipating an increase in demand when factories in China shut down because of Covid reopened, demand actually dropped.
THe CEO’s admission comes just after another CEO, Barry Sternlicht of Starwood Capitol, said that he believes the U.S. economy will enter into a major recession if the U.S. Federal Reserve continues raising interest rates to combat inflation. “
According to Sternlicht, more historic Fed rate hikes will create unnecessary “cracks everywhere” in the economy, including the fragile U.S. housing market, in the fourth quarter of 2022.
The Daily Caller notes that the Fed is expected to increase interest rates by at least .75% at their next meeting.
The writing is on the wall. A recession is looming for the global economy, and the Democrats are doing nothing about it. Unless Republicans can win back Congress in the midterm elections and take back the White House in 2024, we could be looking at a decade of economic stagnation. America needs to act now if we want to avert disaster.
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