Amazon founder Jeff Bezos offered some advice to individuals and small business owners on Saturday when he noted that the economy “doesn’t look good right now.”
Bezos told CNN he “didn’t know” whether the US is “technically in a recession,” noting that some economists “argue about that” and “have certain technical definitions.”
“What I can tell you is that the economy doesn’t look great right now,” the Amazon founder said. “It’s slowing down. You see layoffs in so many sectors of the economy. People are slowing down. Chances are if we’re not in a recession now, we’ll probably be in one very soon.”
Inflation, as measured by the consumer price index, remains elevated despite a slight cooling in October, rising 0.4% from September and 7.7% from the previous year, FOX Business previously reported. In an effort to fight inflation and cool the economy, the Federal Reserve has raised interest rates several times this year, including four consecutive 75 basis point increases.
AMERICANS SEE HIGHER INFLATION AHEAD: NY FED
As the country grapples with the effects of high inflation and rising interest rates, some companies in several industries have laid off workers.
For example, real estate companies Zillow and Redfin recently announced cutbacks of approximately 300 and 862 employees respectively. Tech companies such as Meta Platforms, Twitter and Lyft have also announced that they will be cutting their workforce.
META FIRED MORE THAN 11K EMPLOYEES
Speaking to CNN, Bezos advised individuals and small businesses to “take some risk off the table” amid a potentially looming economic recession.
“If you were going to make a purchase, maybe delay that purchase a little bit,” the Amazon founder advised. “Keep some dry powder handy and wait a while. Try to reduce some risk in your business or your life.”
For individuals, Bezos recommended delaying major purchases, including large televisions, refrigerators, and new cars.
Small businesses, he said, “may be able to postpone some capital purchases,” such as purchasing new equipment. Taking steps to mitigate certain risks “could make all the difference to that small business if we get into even more serious economic trouble,” Bezos said.
“Hope for the best, but prepare for the worst,” Bezos also said of a possible recession in the interview.
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