Europe is more likely to enter a recession than the US.

Citigroup CEO Jane Fraser warns that a recession is more likely in Europe than in the US However, she stressed that it is not easy for the US to avoid a recession.

Citigroup CEO on the global recession

Citigroup Chief Executive Jane Fraser warned about the health of the global economy on Friday, Reuters reported. Citi is the third largest and most globally focused US bank.

Speaking at an investor conference in New York, he discussed how “the three R’s” are affecting the global economy, saying: “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.” He 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 prone to entering a recession than is seen in the US.

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

Commenting on the European Central Bank (ECB) action, Fraser said: “It looks like the ECB is a few months behind where the Fed has been in controlling inflation and without the same flexibility that the US has.”

In the US, Fraser said the question is more about interest rates than the recession. However, she noted that it will be difficult for the US 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” was brewing and advised investors to prepare for the impact.

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

Additionally, Tesla CEO Elon Musk said he has a “super bad feeling” about the economy, prompting President Joe Biden to respond. Musk also said that we are likely in a recession that could last 12 to 18 months.

What do you think of the comments of the CEO of Citigroup? Let us know in the comments section.

kevin helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection between economics and cryptography.

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