Nearly all CEOs say they are preparing for a recession in the United States, a recent survey shows.
When asked to describe economic conditions over the next 12-18 months, 98 percent of CEOs said they were preparing for a recession in the US in the recent Conference Board Measure of CEO Confidence survey.
However, most CEOs believed that the recession in America will be “short and shallow”.
Most CEOs also noted that demand for their company’s products or services increased or remained the same over the past three months.
The survey was conducted between September 19 and October 3 among 136 participating CEOs.
CEO confidence has fallen to its lowest level since the Great Recession, said Dana Peterson, chief economist at The Conference Board.
“Despite expectations of slow growth, tight labor market conditions and wage pressures persist, while hiring plans remained robust,” he said.
Political and governmental instability, access to energy and energy security, and the ongoing conflict between Russia and Ukraine were cited by CEOs as the top three global challenges.
Fed: Economic slowdown helps reduce inflation
Annual inflation in the US, mainly driven by high rents, food prices and medical care costs, remained high in September at 8.2 percent.
While it is not clear whether the Federal Reserve will continue to raise interest rates, the central bank is likely to maintain its current tight monetary policy.
Participants at the joint meeting of the Federal Open Market Committee (FOMC) and the Board of Governors of the Federal Reserve System in September suggested that higher interest rates will last longer.
The monetary policy authority will also continue to reduce its securities holdings over time.
“Many participants indicated that once the key rate had reached a sufficiently restrictive level, it would probably be appropriate to maintain that level for some time until there was convincing evidence that inflation was on track to return to the 2 percent target. “, read the FOMC minutes.
A period of below-trend real GDP growth would help ease inflationary pressures and help the economy achieve its goals of maximum employment and price stability, policymakers said.
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