Amazon founder Jeff Bezos on Saturday offered some advice to individuals and small business owners as he noted the economy “does not look great right now.”
Bezos told CNN he “didn’t know” whether the US is “technically in a recession,” noting some economists “argue over that” and “have certain technical definitions.”
“What I can tell you is the economy does not look great right now,” the Amazon founder said. “Things are slowing down. You’re seeing layoffs in many, many sectors of the economy. People are slowing down. The probabilities say if we’re not in a recession right now, we’re likely to be in one very soon. “
Inflation, as measured by the consumer price index, remains high despite cooling slightly in October, going up 0.4% from September and 7.7% from the previous year, FOX Business previously reported. In an effort to fight inflation and cool the economy, the Federal Reserve has hiked interest rates multiple times this year, including four back-to-back 75-basis-point increases.
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As the country grapples with the impacts of high inflation and rising interest rates, some companies in various sectors have laid off employees.
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For example, real estate companies Zillow and Redfin recently announced cuts of approximately 300 and 862 workers, respectively. Tech companies like Meta Platforms, Twitter and Lyft have also announced they are slashing their headcounts.
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While speaking with CNN, Bezos advised individuals and small businesses to “take some risk off the table” amid a potentially looming economic recession.
“If you were going to make a purchase, maybe slow down that purchase a little bit,” the Amazon founder recommended. “Keep some dry powder on hand, and wait a bit. Try to reduce some risk in your business or your life.”
For individuals, Bezos recommended holding off on big purchases including large televisions, refrigerators and new cars.
Small businesses, he said, could “maybe delay some capital purchases” like acquiring new pieces of equipment. Taking steps to reduce some risk “could make the difference for that small business if we do get into even more serious economic problems,” according to Bezos.
“Hope for the best but prepare for the worst,” Bezos also said regarding a possible recession in the interview.
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