The fear and consequences of inflation may lead to a recession with massive job cuts, hiring freezes and job offers rescinded.
Unfortunately, nothing goes up forever. Runaway inflation has pricked the everything-goes-up bubble. One of the results was that the spigots of cheap money were turned off, and the party was over. Instead of aggressively hiring, tech companies started cutting back and laying off personnel.To understand what is happening, we need to pay heed to Federal Reserve Chairman Jerome Powell.
While Powell didn’t say he is purposely causing a recession to battle inflation, his policies, based on history, could potentially lead to it. The rate hikes make it more difficult and expensive for companies to access capital, boosting the likelihood that the U.S. goes into a recession next year.Jamie Dimon, the CEO of JPMorgan and one of the most respected Wall Street leaders, gave a stern warning to investors.
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