Goldman’s Blankfein Advise Companies and Consumers to Prepare for US Recession – Says It’s ‘Very, Very High Risk’ – Bitcoin News

Lloyd Blankfein, senior chairman and former CEO of Goldman Sachs, warned that companies and consumers should prepare for a U.S. recession. He stressed it was “very, very, high risk”.

Goldman’s Blankfein warns of recession

Lloyd Blankfein, former Goldman Sachs chief executive and now senior chairman of Goldman Sachs, warned of an impending recession in the U.S. in an interview with CBS News that aired on Sunday. He stressed that businesses and consumers should be prepared for this.

Blankfein was Chairman and Chief Executive Officer of global investment bank Goldman Sachs from 2006 to September 2018. He served as chairman until December 2018 and is now senior chairman of Goldman Sachs Group.

He was asked, “Do you think we’re heading for a recession?” Blankfein replied:

We are definitely moving forward. It’s certainly a very, very high risk factor…if I were running a large company, I would be well prepared for it. If I were a consumer, I would be prepared for it.

However, the senior Goldman Sachs chairman explained that a recession “doesn’t happen overnight,” noting that there is “a narrow path” to avoid it.

Commenting on the Fed’s response to inflation, he said, “I think they’ve responded well.” He added, “I think the Fed has very powerful tools.”

Blankfein was asked whether the Fed is taking the steps it needs to control inflation. He replied: “There is an imbalance, there is too much demand. What you have to do is slow that demand.” The former Goldman Sachs CEO elaborated:

You have to slow down the economy. So they will have to raise interest rates. They will have to cut, hopefully reducing the number of jobs not open because of them – and increase the size of the workforce.

“This inflation, some of it is sticky … we have about 8% inflation. Some of it is temporary [and] will disappear. You know, eventually, the war in Ukraine will end. Some supply chain shocks will go away, but some of them will be more thorny and will be with us for a while,” he concluded.

Many analysts predict a U.S. recession. Deutsche Bank Indicates a major recession in the U.S. next year. Blankfein’s own investment bank, Goldman Sachs, indicating a 35% chance of a recession within two years. also, Bank of Americaof strategists warned in April that a “recession shock” was coming.

What do you think of Lloyd Blankfein’s comment? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.



Source link