By | David Gura | www.kpbs.org
The dominos are starting to fall in the U.S. economy.
As the Federal Reserve pumps the brakes on the economy, many American companies are retrenching. There is a growing fear that as the central bank aggressively hikes interest rates to fight high inflation, it could tip the U.S. economy into a recession, and executives are cutting back.
A host of companies have announced job cuts or hiring freezes in just the last two weeks. They range from Tesla and JPMorgan Chase to Redfin and Coinbase.
Netflix last week announced a second round of job cuts for the year, this time eliminating around 300 positions. Earlier this year, the entertainment company announced it had lost subscribers for the first time in more than a decade. Since then, Netflix has eliminated roughly 450 positions.
A key question on the minds of many economists is whether this is the tip of the iceberg with a lot more job cuts coming, or whether it will stop here – a much-needed froth clearing from a sizzling economy.