- Advertisement -
- Advertisement -
Business'Very, very high' risk of recession, warns Goldman's Lloyd...

‘Very, very high’ risk of recession, warns Goldman’s Lloyd Blankfein


- Advertisment -

There’s “a very, very high risk factor” that the U.S. is headed for a recession, Goldman Sachs Group Inc.
Senior Chairman Lloyd Blankfein warned Sunday.

In an interview on CBS News’ “Face the Nation,” Blankfein said there is definitely a risk of recession, and that business and consumers should brace for one.

“If I were running a big company, I would be very prepared for it. If I was a consumer, I’d be prepared for it. But it’s not baked in the cake.”

— Lloyd Blankfein

But he added that there’s a “narrow path” for the Fed to use its “very powerful tools” to avoid a recession. “I think they’re responding well,” he told host Margaret Brennan, according to a transcript.

Blankfein added that the Fed has no choice but to keep raising interest rates to slow down consumer demand. “And that’s going to involve some pain,” he said. While noting that some inflationary factors — such as the war in Ukraine and supply-chain crunches — are transitory and will eventually go away, until then, “it’s going to be quite difficult and oppressive” for lower-income individuals as prices rise.

Also read: Jeff Bezos accuses Biden of ‘misdirection’ over inflation causes and solutions

Blankfein said that while inflation has been stoked by extra fiscal spending spurred by the COVID-19 pandemic, he doesn’t necessarily blame the government for doing all it could to prevent another financial meltdown. Fed Chairman Jerome Powell admitted last week that the central bank was too slow to start raising interest rates to fight inflation.

“They reacted and I think they reacted sensibly with what they knew at the time,” Blankfein said. “And you can argue about that, but that’s all with the benefit of hindsight.”

- Advertisement -

Latest news

Gunmen attack NYSC lodge in Akwa Ibom, rob, rape corps members

Gunmen attacked the National Youth Service Corps (NYSC) lodge along Udo Ekong Ekwere street, off Information Drive in...

Uvalde Mayor Fears Cover-Up in State’s Investigation of Elementary School Shooting That Killed 19 Children – Crime Online

The mayor of Uvalde, Texas, said he wanted Governor Greg Abbott to intervene in the...

Chicago Mayor is tired of your toxic public discourse – HotAir

Chicago Mayor Lori Lightfoot has had just about enough of people attacking cops and badmouthing the Chicago Police Department...
- Advertisement -

Who’s Daniel Tosh’s ex-girlfriend Megan Abrigo? Wiki: Net Worth, Dating

Just a simple reminder that article is created and owned only by biographytribune.com. Article cannot be re-published in any...

Democrat Strategists Sound Alarm over Joe Biden’s Setbacks

Some Democrat strategists have expressed concern over President Joe Biden’s handling of hot-button issues such as inflation and abortion...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you

- Advertisement -