The head of Citigroup Fraser predicted an imminent recession in Europe
The head of Citigroup Bank Jane Fraser, speaking at the World Economic Forum in Davos, predicted difficult times for the European economy, which would result in a long recession. Her words are quoted by CNBC.
“Europe is right in the middle of storms because of supply chains, because of the energy crisis and obviously just because of the proximity to the events that are happening in Ukraine,” Fraser said.
At the same time, according to her, other regions are less affected by these factors and more resistant to possible downturns.
A chance for the United States will be a competent increase in the base rate by the Federal Reserve, Fraser said. Under favorable circumstances, a well-adjusted monetary policy will make it possible to avoid a surge in inflation.
In turn, the head of the Bank of France, Francois Villeroy de Gallo, who took part in the same panel session, expressed disagreement with Fraser’s position. According to him, the European economy is sufficiently resistant to the current crisis.