At today’s Senate Banking Committee hearing, Citigroup CEO Jane Fraser warned that a recession is possible.

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Citigroup CEO Jane Fraser delivered a stark warning to the Senate Banking Committee on Tuesday, stating that “a recession is possible” if the ongoing supply chain issues and rising inflation are not addressed effectively.

Fraser, who became the first woman to lead a major Wall Street bank when she took the helm at Citigroup earlier this year, emphasized the need for Congress to take action to address the economic challenges facing the nation.

In her testimony, Fraser highlighted the significant disruptions caused by the global supply chain issues, which have been exacerbated by the COVID-19 pandemic. These disruptions have led to shortages of essential goods and materials, driving up prices and putting strain on businesses and consumers alike.

Furthermore, Fraser expressed concerns about the impact of rising inflation on the economy. The Federal Reserve has been grappling with surging prices, which have put pressure on the central bank to raise interest rates in an effort to curb inflation. However, this move could potentially dampen economic growth and lead to a recession.

Fraser’s warning comes at a time when the U.S. economy is facing multiple headwinds, including a labor shortage, rising energy costs, and the ongoing challenges posed by the pandemic. These factors have contributed to a sense of uncertainty about the future economic outlook.

In response to these challenges, Fraser urged lawmakers to take action to support small businesses and address the supply chain issues. She also stressed the importance of investing in infrastructure and workforce development to help stimulate economic growth and create jobs.

Fraser’s testimony serves as a sobering reminder of the fragility of the current economic recovery and the need for proactive measures to address the underlying challenges facing the nation.

As the leader of one of the largest financial institutions in the world, Fraser’s warning carries significant weight and underscores the urgency of addressing these economic issues at a policy level.

While the prospect of a recession is concerning, Fraser’s testimony also highlights the potential for action to mitigate the risks and support the economy. By heeding her warning and enacting targeted measures, policymakers can potentially avert a downturn and set the stage for sustained economic growth.

As Congress deliberates on the best path forward, Fraser’s testimony serves as a timely reminder of the importance of proactive and coordinated efforts to address the economic challenges facing the nation. The stakes are high, but with the right approach, the U.S. can navigate through these challenges and secure a brighter economic future for all.