Citigroup CEO Believes Recession in Europe is More Likely Than in the U.S.
<p>Citigroup CEO Jane Fraser warned about recession during her talk at an investor conference in New York, stating the “three Rs” (rates, Russia, and recession) that affect the global economy.</p>
<p>Fraser believes Europe is more likely to be heading into a recession than the U.S., emphasizing Europe’s energy problems that are having an impact on a number of companies in certain industries, with some of them shutting down operations due to rising energy costs.</p>
<p>Given a number of major central banks’ plans for interest rate hikes to fight against inflation, more stress is expected to be added to an already-slowing world economy.</p>
<p>Fraser believes European Central Bank (ECB) is a few months behind Fed in getting arms around inflation. While stating that recession is not the base case for the U.S, Fraser mentioned that it will be difficult for the U.S. to avoid it.</p>
