Jeff Bezos Says He Should Shut Down on a Recession

Pretty much everyone is preparing for the possibility of a recession, including Jeff Bezos.

The billionaire Amazon founder and executive chairman said in a Tweet yesterday “shut the shutters”.

Bezos responded to a comment from Goldman Sachs CEO David Solomon on CNBC’s “Squawk Box” where he said in the “results distribution” that there is a “high probability that we could have a recession.”

A ‘distribution of outcomes’ is a statistical method that shows all possible outcomes of a situation – think of the most common one, the ‘bell curve’.

It has led many to suggest that a recession is inevitable. On Monday, Bloomberg economists predicted a 100% chance of a recession in the US in the next 12 months, mainly due to the continued interest rate hikes by the Federal Reserve.

Related: The Fed raised interest rates again. Here’s what that means for your wallet.

But not everyone says the same. A high-profile credit rating firm, Fitch Ratings, has argued that the US will experience a “mild” recession in the spring of 2023. CNN reported:.

The union argued that the coming recession would be “broadly similar” to a recession that occurred from July 1990 to March 1991, which was: short and mild by historical standards, as the unemployment rate rose by two points. In the Great Recession, for example, it went up almost four points.

It said the time leading up to that recession in the ’90s has similarities to our present moment. As then, oil prices were driven up by an international conflict. It also says that the Fed was trying to tackle inflation by raising interest rates like they are now.

Fitch added that low unemployment and a healthier housing market would prevent a coming recession from getting as bad as 2008.

Whatever happens, Solomon said entrepreneurs running “risk-based businesses” may need to take a break.

“It’s a time to think more carefully about your risk box, your risk appetite,” he said.

Companies from Meta to Google have cut costs and announced layoffs in anticipation of a recession. Even Amazon has implemented cost-cutting measures, although it has recently given its warehouse workers a (small) raise that is irritating employees.

Related: Why short-term cost savings can hurt your business in the long run