Here’s How CEOs from PayPal and Nasdaq, Plus a Senator, View the Risk of Recession

May 23, 2022

Here’s How CEOs from PayPal and Nasdaq, Plus a Senator, View the Risk of Recession

It seems like everybody is talking about a recession this week at the World Economic Forum. What are the chances of a recession coming, whether in the United States, Europe, or around the world and when will it take place?

Finance CEOs and a senator were among the latest to address the problem during Monday's discussion on the US economic prospects.

Because of the uncertainty surrounding inflation at multi-decade highs, the conflict in Europe, and global disruptions caused by China's attempts to combat COVID, their guidance was cautious for the near future.

Prof. Jason Furman, an economist at the John F. Kennedy School of Government at Harvard University, led the discussion.

He believes that there is only a small chance this inflation will be transitory and that it will decrease this year. The Federal Reserve will use the inflation rate as a key indicator as it moves aggressively to tighten monetary policy in the months ahead. In the end, the pace of an interest rate rise will heavily influence the amount of contraction in economic demand and the probability of a recession.

"I set my basic forecast for next year's recession at 15%," Furman said. "That's just how the economy works," he added. "My current rating is slightly higher than 15%, but not significantly."

"There are positive signs for the market on a one-year horizon," the professor added. "I get more concerned one to two years from now when I believe the Fed will raise interest rates above 3%, perhaps to 4% or 5%."

According to Senator Pat Toomey, he is more concerned about the economy in the short term than Furman is and that markets are a good indicator of where the economy is heading.

"I think the market will play an important role: the boost in yields, the strength of the dollar… we're already witnessing some demand destruction, and the margins of big retailers are already starting to compress," Toomey noted.

"It wouldn't surprise me if the economy slows down even more this year," the senator said. "But in the longer run, I'm optimistic."

According to Nasdaq CEO Adena Friedman, "the markets are indicating that a recession is not zero risk."

"The Fed is actually trying to achieve some slowdown in economic growth," she said. "It is uncertain, however, whether the process reaches a tipping point."

Consumer confidence is what most concerns the exchange chief. Market turbulence and declining confidence could raise savers' anxiety and lead to an increase in selling pressure.

"I think this has the potential to self-fulfill into a recession." That's where Friedman believes the nonzero risk lies. "However, I'm not ready to put a percentage on this risk."

Dan Schulman, PayPal CEO, said he couldn't give any estimates on how likely a downturn in the US is but noted that the probability of one in Europe is higher than in the United States.

"I believe it depends on how long the Ukrainian war lasts, confidence, supply chains, and whether or not the Fed can manage this softer landing," he added.

"We have never seen this level of uncertainty before," said the CEO. "It is highly unlikely that any of us can accurately predict at this point."

Subscribe Our Newsletter

Tesla Could Be Expanding Its Charging Network. Why That Dangerous
Tesla Could Be Expanding Its Charging Network. Why That Dangerous Move Is Justifiable

Charging for Everyone: Tesla seems to be letting owners of other EVs use its charging network. That has one hazard, even though it's probably a wise choice.

Companies
New SEC Chair Atkins Takes the Helm

Constantine

New SEC Chair Atkins Takes the Helm — What It Could Mean for Crypto Regulation

Paul Atkins’ appointment as the new SEC Chair signals a potential turning point in U.S. crypto policy, with hopes for clarity and cooperation.

Banks and Finance
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Otar

Bank Statement Loan: What is it and Who Should Get One?
Learn how bank statement loan works and who can benefit from them. Explore eligibility, advantages, and application steps.

discover
Brokers and Liquidity Providers Collaboration for Optimal Execution

Alexander

How Brokers and Liquidity Providers Collaborate for Optimal Execution

In this articlе, we will еxplore the mechanics behind broker-LP relationships and the challengеs that may arise in such a partnership.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.