Chief Of Goldman Sachs Issues Worrisome Statement About Possible Recession

In a warning issued this past Sunday, Goldman Sachs Chairman Lloyd Blankfein claimed that the overall risk of the U.S. dropping back into another recession was “very, very high,” and corporations and citizens alike should be prepping for the worst-case scenario.

The investment bank’s former chief executive and current senior chairman, Blankfein, put out the worrying statement while being interviewed on a segment of “Face the Nation,” from CBS. It comes as the rate of inflation has been clocked at 8.3 percent over where it was at this time last year, the level of economic growth offically dropped into the negative for the first quarter of the year, and th level of nation debt has managed to break $30 trillion.

“If I were running a big company, I would be very prepared for it,” claimed Blankfein. “If I was a consumer, I’d be prepared for it.”

The Federal Reserve increased its benchmark interest rate by almost half a point earlier this past month, in a strong, but entirely expected move to try and curb the surging rate of inflation as we deal with negative economic growth. The central bank is slated to continue to raise that rate throughout the year after forcibly holding it at or next to zero for the past few years. the level normally makes movements to the tune of quarter-point increments, and this half-point jump directly after the standard quarter-point step in March was the biggest jump we have seen since back in May of 2000. The current federal funds target rate is slated to sit between .75% and 1%.

By the book, a recession is defined as negative economic growth across two straight quarters. Additionally, if a recession takes place hand in hand with a massive surge in the rate of inflation it is normally labeled as “stagflation” by economists.

Blankfein also stated that a recession is “not baked in the cake” and issued the claim that officials within the Federal Reserve have been “responding well” to the threat.

This warning from Blankfein takes place just after Goldman’s economists slashed their forecasts that showed U.S. economic growth for this year and next. It now seems to expect DGP to expand out 2.4% through this year, which is down from 2.6%. It also slashes its 2023 estimates to 1.6% down from 2.2%.

Just last month, one top economist issued a warning that the entire planet is already suffering through the preliminary stages of a “very significant” recession.

“It’s going to be a global recession pulling down [the] Euro zone in particular,” Piper Sandler Chief Global Economist Nancy Lazar stated to Fox Business anchor Maria Bartiromo, highlighting that “it looks like China GDP in the second quarter could also be negative.”

You Might Like
Share

Leave a Reply

Your email address will not be published.

Send this to a friend