America's CEOs are becoming more pessimistic as inflation rages and the Federal ReserveFederal Reserve keeps hiking interest rates, according to a new survey by KPMG.
Ninety-one percent of CEOs believe there will be a recession in the next 12 months. Only one-third of CEOs believe it will be a short and mild recession. Some CEOs are considering workforce reductions, about half of the CEOs are thinking about whether or not they need to reduce their workforce, according to Paul Knopp, CEO of KPMG, according to FOX Business.
Knopp said that of the 400 large company C Suite executives surveyed, many believe that the Fed has a harder balancing act in controlling the economic downturn.
They're paying attention to what the Fed is saying about the weakness or sustained weakness they need to create, the cooling they need to create in the economy to beat the corrosive effects of inflation, which can really damage the economy in the long term, he added.
The US policymakers laid out the roadmap for more of the same in the coming months and inked the third consecutive 75 basis-point rate hike of the year last month. Federal Reserve Chairman Jerome Powell reversed his belief that the economy could avoid a hard landing or a sharp downturn in the economy.
He said that the chances of a soft landing are likely to diminish to the extent that policy needs to be more restrictive or restrictive for longer.
Policymakers also signaled that the job market may need to take a hit. The unemployment rate for the year 2023 was 4.4% from 3.8%. On Friday, investors will get the September jobs report, which is expected to show that employers added 250,000 positions while unemployment held at 3.7%.
Companies like Facebook, Ford, Robinhood and Google have signaled their hiring pullbacks and/or layoffs.
The stock market, which is a barometer of future sentiment, is on pace for its worst year since 2008, according to Wall Street. The S&P 500, the broadest measure of stocks, has lost 23%.
More than 90% of these business leaders say they will be resilient over the next three years, expressing confidence in the domestic economy and their respective businesses despite the grim outlook.