Microsoft co-founder Bill Gates says a global economic slowdown is possible as a result of rising interest rates on top of the pandemic & geopolitical situation.
Gates said that during the pandemic “government debt levels were already very high & there were already some supply chain problems.”
Add to that soaring commodity prices fueled by the Russia-Ukraine crisis, inflationary pressures have led central banks around the world to raise interest rates, including The U.S. Fed, the Bank of England, & the Reserve Bank of India
Why this matters
Allianz Insurance’s Chief Economist Mohamed El Erian has also expressed his fear of a potential recession as a result of the U.S. Fed beginning to hike rates too late. El Erian believes the Fed should’ve raised rates in late 2021, & began tapering its assets last summer.