Tesla and SpaceX CEO Elon Musk suggested Friday that a global recession could last until mid-2024.
“Just guessing, but probably until spring of ’24,” Musk said on Twitter when asked how long he thought a recession could last.
The billionaire joins others like him who have sounded the alarm bells over a potential recession in the coming year.
Amazon founder Jeff Bezos warned on Tuesday that it’s time to “batten down the hatches” in preparation for a recession, and JPMorgan Chase CEO Jamie Dimon last week predicted that the U.S. will face an economic downturn within the next six to nine months.
The news from the billionaire comes amid stubbornly high inflation not seen in decades that has eaten into Americans’ paycheck. Utilities, grocery bills and housing have become expensive, even amid efforts by the Federal Reserve to hike interest rates.
The Fed has hiked rates close to half a dozen times this year and is likely to do so again in the coming months. These hikes, meant to slow the economy and lessen Americans’ spending, have sparked concerns of a recession.
Sixty-three percent of economists in a recent Wall Street Journal Survey said they believe a recession will occur in the next year. The International Monetary Fund (IMF) also lowered its 2023 economic growth forecast to 2.7 percent growth, warning that “for many people, 2023 will feel like a recession.”
However, the Biden administration has remained steadfast in its message that a recession is not certain. Transportation Secretary Pete Buttigieg said as much on Sunday, noting that “it’s possible, but not inevitable.”
President Biden recently acknowledged that there is a possibility of a “slight recession” but added that he doesn’t “anticipate it.”