Amazon founder Jeff Bezos offered some advice for individuals and small business owners on Saturday, as he noted that the economy “isn’t looking good right now.”
Bezos told CNN he “didn’t know” if the United States was “technically in a recession,” noting that some economists were “arguing about it” and “having certain technical definitions.”
“What I can tell you is that the economy is not doing well right now,” the Amazon founder said. “Things are slowing down. You’re seeing layoffs in so many sectors of the economy. People are slowing down. The odds say that if we’re not in a recession right now, we’ll probably be there very soon.”
Inflation, as measured by the consumer price index, remains high despite a slight slowdown in October, increasing by 0.4% compared to September and 7.7% compared to 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 increases of 75 basis points.
AMERICANS SEE HIGHER INFLATION: NY FED
As the country grapples with the effects of high inflation and rising interest rates, some companies in various sectors have laid off employees.
For example, real estate companies Zillow and Redfin recently announced layoffs of around 300 and 862 workers, respectively. Tech companies like Meta Platforms, Twitter and Lyft also announced they were cutting staff.
META will lay off more than 11,000 EMPLOYEES
In a conversation with CNN, Bezos advised individuals and small businesses to “take some risk off the table” amid a potentially impending economic downturn.
“If you were going to make a purchase, maybe slow down that purchase a bit,” the Amazon founder recommended. “Keep some dry powder handy and wait a bit. Try to reduce some risk in your business or in your life.”
For individuals, Bezos recommended suspending large purchases, including large televisions, refrigerators and new cars.
Small businesses, he said, could “perhaps delay some capital purchases,” such as acquiring new equipment. Taking steps to reduce certain risks “could make the difference for this small business if we run into even bigger economic problems,” 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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