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Microsoft founder Bill Gates said he had “a strong argument” to ensure that we are very close to seeing a global economic slowdown.
The employer of 66 years told CNN that world situations such as Russia’s invasion of Ukraine at the beginning of the year is a symptom with a strong impact on the world economy in the coming years.
“It is likely to accelerate the inflationary problems that the economies of the rich world have and force an increase in interest rates that will eventually result in an economic slowdown,” he said.
Gates said that the military confrontation between European countries comes to pay for the problems derived from the pandemic , where the Government debt levels were already very high, with problems in the supply chain.
For the businessman, the problem would be even more complicated if the rich countries suffered economic problems, since the needs of poor countries would be more affected. In early April he said the key to preventing another pandemic was to close the overall health gap between rich and poor countries.
Gates’ statements come days after the United States Federal Reserve (Fed) raised interest rates by 0.5% in an attempt to curb inflation, with one of its highest peaks in 40 years in the country , 8.5% year-on-year.
The increase in rates will push the federal funds rate to a range of 0.75% to 1%, the highest level since the Covid pandemic began 19, two years ago.
The current market price will also cause the rate to increase from 3% to 3.19% by the end of 2022. Financial markets value a rate of 3.6% for the middle of next year, which would be the highest in 15 years.
The aggressive actions of the Fed have divided opinions in Wall Street banks on whether the global economy is heading towards an economic recession or not. Jerome Powell, president of the Fed has recognized that the inflationary situation in the US has been a consequence of the conflict between Russia and Ukraine and the economic recovery from the pandemic .
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