Citigroup CEOJane Fraser is convinced Europe is headed for arecession .- She said that the energy crisis and war in Ukraine would drive economic downturn.
$4's chief executive Jane Fraser is now certain the war in Ukraine and the resulting energy crisis will lead to a European recession.
Fraser told the $4 that the Russian threat, surging energy prices, and supply chain disruptions make economic downturn all but inevitable.
"There are three 'R' words right now - Russia, recession, and rates," $4. "Europe is right in the middle of storms from supply chains, the energy crisis, and its proximity to atrocities that are happening in Ukraine."
Russia's invasion of Ukraine led to a spike in energy prices, with $4 surging past $110 a barrel. Central European countries such as Germany are seen as particularly vulnerable to price rises due to their reliance on Russian oil exports.
$4 as it attempts to bring inflation under control. That will likely suppress economic growth and hit stock market indices like France's $4 and Germany's $4.
Fraser, $4, was asked by CNBC's Geoff Cutmore whether Europe is headed for a recession.
"Yes - and I hope I'm wrong," she replied.
Fraser, who previously forecast the "$4" that is currently hammering the stock market, said the US is likely to prove more resilient than Europe to the economic downturn.
"In the US, it's much more about rates [than recessions] because there's resiliency in the economy," she said. "Consumers are sitting on $3.4 trillion of deposits… so there's some buffer there."