Amazon founder Jeff Bezos warns of possible Recession; advises what to bring off the table

Amazon founder Jeff Bezos has once again issued one of his starkest warnings yet about the global economy. Bezos has urged the consumers and businesses to postpone their large purchases as the fear of recession is mounting. Speaking to CNN’s Chole Melas in an interview, Bezos has cautioned that the coming months could bring prolonged downturn. Bezos has recommend that households should consider putting a hold on purchasing big-ticket products such as cars, televisions and appliances. He urge the consumers to save that money as it will make a lot of difference if the economic worsens. Along with this, Bezos has also advised the small businesses to avoid large capital expenditures or acquisitions during this uncertain period.

“Take some risk off the table,” Bezos said. “Just a little bit of risk reduction could make the difference.”

Bezos’ broader outlook

Despite his cautionary advice, Bezos struck an optimistic tone about the long-term future, saying he believes the American Dream remains attainable. He even projected that within his lifetime, space travel could become broadly accessible to the public. Last month, Bezos tweeted a warning to “batten down the hatches,” advice he reiterated in his CNN interview as relevant to both consumers and business owners.

Impact on Amazon

Ironically, if the consumers follow Bezos’ advice, then it could mean lower sales for Amazon. Recently, Amazon announced its plans to layoff 14,000 employees. In October, Amazon projected holiday-quarter sales below Wall Street expectations, citing inflation and shifting consumer behavior. Americans are spending more on travel and dining out and less on discretionary goods.

Moody's warns that many US States showing recession signs

Recently, Mark Zandi, chief economist at credit rating agency Moody' warned about recession in the US. A new analysis of state-level data suggests that the US economy is "on the edge of recession," said Mark Zandi of Moody's. "Based on my assessment of various data, states making up nearly a third of US GDP are either in or at high risk of recession, another third are just holding steady, and the remaining third are growing," Zandi wrote on social media.

The data reveals a mixed picture across the country. States in the South are generally the strongest, though their growth is beginning to slow. Meanwhile, some of the nation's largest economies, like California and New York, are described as "holding their own," and their stability is seen as critical to preventing a full-blown national recession.

However, many states are showing signs of vulnerability. Wyoming, Montana, Minnesota, Mississippi, Kansas, and Massachusetts were all identified as being at high risk of recession. The broader Washington, D.C. area is also notable for its economic struggles, which Zandi attributes to government job cuts.

Adding to the forecast, Zandi predicts that the annual inflation rate, currently at 2.7%, could rise to nearly 4% within the next year, further eroding purchasing power for consumers.

Along with this, Zandi also warned about the restrictive immigration policies which could hurt the tech sector. He urged the lawmakers to protect access to global talent especially in AI, software engineering, and data science. "If it feels like we're coming to the end of the tariff increases, or like we're going to get a more rational immigration policy,' I think that would be a signal that the coast may be cleared," Zandi told BI.

“It’s no mystery why the economy is struggling; blame increasing U.S. tariffs and highly restrictive immigration policy. The tariffs are cutting increasingly deeply into the profits of American companies and the purchasing power of American households. Fewer immigrant workers means a smaller economy,” added Zandi.