Jeff Bezos Sounds the Alarm on Upcoming Recession, Offers These Key Tips to Help Weather the Storm (VIDEO)
Since the turn of the new year, runaway inflation has caused chaos worldwide. Most of the inflation can be tied back to monetary policies enacted during the COVID-19 pandemic and the disruption to the energy industry by the ongoing Russian invasion of Ukraine.
The Federal Reserve responded to inflation in the only way it could: raising interest rates. Then they raised them again. And again. In fact, they increased rates six times in 2022, from 0.25% to 3.75%; the combined 375 bps raise is the largest ever in a single year. It is this sharp rise in interest rates and the resulting damper on business that many fear will push the country into a recession.
Whether that recession actually takes place is still uncertain, but each new rate hike increases the likelihood. One prominent businessman who has seen enough to believe that a recession is coming is Jeff Bezos, the former CEO and current Chairman of Amazon (NASDAQ: AMZN).
Source: CNBC Television YouTube
In a recent interview, Bezos offered his advice to American consumers ahead of the coming holiday season:
This piece of advice is particularly interesting, considering the source. Bezos derives his wealth from Amazon, which has made a business of providing unessential purchases at the tap of a button. Telling consumers to ratchet back their spending habits seems to run counter to his company’s business pursuits.
In the same interview, Bezos announced that he would be giving away most of his $100+ billion fortune to combat climate change and unite humanity, so perhaps this a new, altruistic Bezos making his debut with a pair of announcements meant to benefit society seemingly to his detriment.
Amazon closed trading today at $96.54 per share, up +4.46% on the day. YTD, AMZN stock is down -43.35%.
Learn more about Amazon: Website | Investor Deck | AMZN Chart
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Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks mentioned in this article.