CEO of Hilton Chris Nassetta Over the last 15 years, as CEO of a hotelier, I’ve seen several Federal Reserve rate cycles.
The longtime leader continues to hope the latest policy, focused on aggressive interest rate hikes to stem four decades of high inflation, will bring a decent landing to the once-too-hot US economy.
“My own view is that there is a good chance that a reasonable result will be obtained. [economic] The landing is like a soft to bumpy landing with the economy,” Nassetta said. Yahoo Finance All Markets Summit on monday.
Some business leaders would argue that the Fed has already started a hard landing for the economy as a result of years of ultra-low interest rates.
“Unfortunately yes [the Fed would be OK with a recession]Senior Economist, BMO As Jennifer Lee said on Yahoo Finance Live:“And the Fed has softened the tone a bit over the past two months. [economic] landing. But now they have already said the pain will be felt. Unfortunately, this is what happens when central banks tighten aggressively. ”
The U.S. dollar has surged against foreign currencies, hurting quarterly sales for major multinationals such as Nike (Nike) and FedEx (FDX). Mortgage rates have risen to nearly his 7%, slowing demand for homes. Also, economic growth, as measured by Gross Domestic Product (GDP), slowed in the first half of the year.
On the other hand, the Dow Jones Industrial Average (^ DJI), S&P 500 (^GSPC), and the Nasdaq Composite (^IXIC) has been declining in double digits over the years.
However, Hilton lifted its full-year guidance in January due to strong leisure travel and improving demand from businesses.
Nassetta sees positive trends continuing for business heading into 2023, despite rising interest rates.
“We can say that we are at the beginning of what I think will be a new golden age of travel,” Nassetta added.
Brian Sotzi general editor, Yahoo Finance anchorFollow Sozzi on Twitter @BrianSozzi and LinkedIn.
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