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ServiceNow CEO: I believe a recession would be ‘short-lived’

ServiceNow CEO Bill McDermott joins 'Influencers with Andy Serwer' to discuss the current market, the possibility of a recession, and the Russia-Ukraine crisis.

Video Transcript

BILL MCDERMOTT: I think most customers are preparing to be in a recession. I think there's a chance you could have a technical recession, but I don't think it'll be long-lived. I do believe that as the monetary policy becomes a little bit more predictable and perhaps even loosens, let's just say, a year from now, if you see inflation numbers come down, and you see monetary policy stabilize, you're going to see the markets run because business is great. And the business for digital companies like ours is fantastic.

And actually, I see the tailwind coming into the market again, where people are now saying, OK, I've done the great reprioritization. I know which platforms matter. I actually know what those platforms do. I'm doubling down on digital transformation. So I see that tailwind actually reigniting even stronger than it was before these macro crosswinds became popular to talk about in the last 90 days. So I think growth is back, especially for digital companies.

ANDY SERWER: When do you see that actually taking hold, though? I mean, we need to see a resolution in Ukraine. Do we need to see this cycle churning with the Fed?

BILL MCDERMOTT: Yeah, I think that the Ukrainian situation is unpredictable and probably could last a while. And I don't think that'll be a bellwether for the overall economy anywhere in the world. Yes, the supply chain complications are there. Yes, there's issues. And of course it's a humanitarian crisis beyond belief. And we're all heartbroken to see this happening. It shouldn't be happening in the 21st century. It's hard to actually stomach.

But that aside, it won't be the determining factor in the economy. I do think inflation is the big thing. So once inflation stabilizes or starts to come down, I think that is going to be a very, very good sign. And I don't think it'll take that long, given the tightening of the monetary policy, not only in the United States, but now also in Europe. So I'm actually really optimistic right now that you could have something technical, short-lived. And I think the economies are actually going to be fine.