Jane Fraser, the CEO of Citigroup Inc., warned yesterday that Europe was more likely than the United States to enter a recession, joining other major bank CEOs this week in warning about the global economy’s health.
Fraser, the CEO of the third-largest and most internationally focused bank in the United States, just returned from a globe tour that included visits to Asia, Europe, and the Middle East, where she claimed her discussions centered on “the three Rs.”
In the United States, the question is more about interest rates than the recession. Fraser said in Europe, “the energy side was really having an impact on a number of companies in certain industries that are not even competitive right now.” Some of them are shutting down operations because of the cost of electricity and energy, Fraser said.
Global central banks are preparing a common pullback from key financial markets in the first-ever round of global quantitative tightening expected to restrict credit and add stress to an already-slowing world economy.
The European Central Bank (ECB) is “a few months behind” the U.S., where the Fed has been in getting its arms around inflation and without quite the same flexibility,
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