Wells Fargo CEO Warns ‘No Question’ Worst Is yet to Come for Americans
Earlier this week, the CEO of Wells Fargo warned Americans that there is no question our economy is going for the worst days before we reach the good.
“It’s going to be hard to avoid some kind of recession.”
Charles Scharf said during a Wall Street Journal event.
Jerome Powell and the Fed have already raised interest rates twice this year and even with this effort, inflation data shows it has rocketed up to 8.3% from April 2021 to April 2022 which would mark a forty-year high. With the spiking interest rates and spiking inflation, economic officials are questioning if the United States is headed for hell.
“The fact that everyone is so strong going into this should hopefully provide a cushion such that whatever recession there is if there is one, is short and not all that deep.”
Charles Scharf said, stressing that the recession will likely be mild.
Jerome Powell on the other hand has stated there is no recession in sight and backing his claim he has referenced strong labor markets and consumer spending.
“It will be challenging, it won’t be easy. No one here thinks that it will be easy. Nonetheless, we think there are pathways… for us to get there. Whether we can execute a soft landing or not, it may actually depend on factors that we don’t control.”
Jerome Powell said.
“What we can control is demand, we can’t really affect supply with our policies. And supply is a big part of the story here. But more than that, there are huge events, geopolitical events going on around the world, that is going to play a very important role in the economy in the next year or so. So the question of whether we can execute a soft landing or not may actually depend on factors that we don’t control.”
Powell continued, explaining that prices are due to supply chain issues but no specifics were mentioned.
As the officials on the Hill beat around the bush, business leaders such as Jeff Bezos and Elon Musk have warned of inflationary pressures on the economy. Both have flagged the Biden administration’s policy decisions and excessive spending packages as the cause.