Citigroup’s Jane Fraser sees Europe heading into recession (NYSE:C) – Seeking Alpha

Written by Amanda

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Citigroup (NYSE:C) CEO Jane Fraser sees Europe headed to recession as a number of factors converge, she told CNBC during the World Economic Forum in Davos, Switzerland, on Monday.

“Europe is right in the middle of the storms from supply chains, from the energy crisis, and obviously just the proximity to some of the atrocities that are occurring in Ukraine,” she said.

She didn’t make any predictions on when a European downturn would occur. The U.S., which has shown greater resiliency, may avert a recession, she said. A lot depends on how well the Federal Reserve conducts its tightening cycle as inflation climbs higher. “There’s some buffer there,” she said. “To be seen if it’s used wisely or not.”

Francois Villeroy de Galhau, governor of the Central Bank of France and a member of the European Central Bank Governing Council, disagreed that the European economy is heading to recession. “The main problem, at least in the short run, is inflation,” he said. “This is why we have to normalize monetary policy.”

Earlier, ECB President Christine Lagarde said the ECB’s benchmark rate may exit negative territory by the end of Q3.

Source: seekingalpha.com

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