After calling on Americans to prepare for “difficult times”, the American billionaire, founder of the e-commerce giant, Jeff Bezos, directed new advice to consumers amid existing fears of an economic recession.
Bezos said, in an interview Exclusive with CNN from his home in the US capital, Washington, that consumers and businesses alike should consider postponing large purchases in the coming months.
Last month, Bezos advised in a tweet to “prepare for tough times”:
Yep, the probabilities in this economy tell you to batten down the hatches. https://t.co/SwldRdms5v
— Jeff Bezos (@JeffBezos) October 18, 2022
Bezos explained in the interview that the advice was directed at business owners and consumers alike, noting that individuals should consider postponing the purchase of large items they were looking forward to and that companies should postpone acquisitions and reduce capital expenditures.
“Avoid some risk,” Bezos said. “A little bit of risk reduction can make a difference to this small business if we have more serious economic problems. You have to play on the odds a little bit.”
And “CNN” said that Bezos risks this advice by reducing Amazon sales, the main source of his $ 124 billion fortune.
Recent reports stated that the company is seeking to lay off about 10,000 employees, in the largest reduction in employment in its history, in addition to freezing the hiring process.
Amazon said in October that it expected sales for the last three months of the year to be well below Wall Street expectations.
The expectations came with the state of inflation experienced by the US economy and recession fears affecting consumer purchasing decisions, as Americans focus more on traveling and eating abroad, and less on purchasing non-essential goods.
Although the US economy is not officially in a recession, nearly 75 percent of likely voters in a recent CNN poll said they feel they are in a recession.
But official figures indicate inflation slowed in October to its lowest level since January 2022.
Consumer prices increased by 7.7 percent in October compared to October 2021, according to the consumer price reference index, which was published by the Ministry of Labor last Thursday. This increase is less than that recorded in September on an annual basis.
This slowdown may be an indication that the measures taken by the US Federal Reserve to curb inflation are bearing fruit.
Bezos had also stated in the interview that he plans to donate the majority of his wealth during his lifetime, with the bulk of it being devoted to combating climate change and combating social and political divisions.