Salesforce's Benioff expects painful recession after market chaos

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Salesforce's Benioff expects painful recession after market chaos
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Salesforce CEO Marc Benioff is bracing for a brutal recession - and says he was blindsided by the market chaos last year

The technology industry boomed during the pandemic. Companies embraced remote-working tools, and a combination of rock-bottom interest rates, stimulus checks, and federal loans and grants boosted demand.

The rosy backdrop darkened last year as inflation spiked to a 40-year high. The Fed responded by raising rates to upwards of 4.5% andHigher rates encourage saving over spending and lifting borrowing costs, which can curb the pace of price increases. Yet they also weigh on asset prices and economic growth, increasing the risk of a recession.

Tech bosses realized they needed to revamp their strategies to reflect the"new normal," Benioff said.

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