![\"Goldman](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/05\/goldman.jpg\")
<\/p>\n<\/p>\n
Goldman Sachs Senior Chairman and former CEO Lloyd Blankfein has warned that companies and consumers should prepare for a recession in the U.S. He stressed that it\u2019s a \u201cvery, very, high risk.\u201d <\/strong><\/p>\n Lloyd Blankfein, a former Goldman Sachs CEO who is now the firm\u2019s senior chairman, warned about an impending recession in the U.S. in an interview with CBS News, aired Sunday. He stressed that companies and consumers should be prepared for it.<\/p>\n Blankfein served as chairman and chief executive officer of global investment bank Goldman Sachs from 2006 through September 2018. He remained chairman through December 2018 and is now senior chairman of the Goldman Sachs Group.<\/p>\n He was asked, \u201cDo you think we\u2019re headed towards recession?\u201d Blankfein replied:<\/p>\n We\u2019re certainly heading. It\u2019s certainly a very, very high risk factor \u2026 If I were running a big company, I would be very prepared for it. If I was a consumer, I\u2019d be prepared for it.<\/p>\n<\/blockquote>\n However, the Goldman Sachs senior chairman explained that a recession is \u201cnot baked in the cake,\u201d noting that there\u2019s \u201ca narrow path\u201d to avoid it.<\/p>\n Commenting on the Federal Reserve\u2019s response to inflation, he said, \u201cI think they\u2019re responding well.\u201d He added, \u201cI think the Fed has very powerful tools.\u201d<\/p>\n Blankfein was asked if the Fed is doing what\u2019s needed to control inflation. He replied: \u201cthere\u2019s an imbalance, too much demand. And what you have to do is you have to slow down that demand.\u201d The former Goldman CEO elaborated:<\/p>\n You have to slow down the economy. And so they\u2019re going to have to raise rates. They\u2019re going to have to curtail, hopefully reduce the number of positions that are unopened \u2026 and increase the size of the labor force.<\/p>\n<\/blockquote>\n \u201cThis inflation, some of it is sticky \u2026 we have something like 8% inflation. Some of that is transitory [and] will go away. You know, eventually, the war in Ukraine will be over. Some of the supply chain shocks will go away, but some of it will be a little bit stickier and will be with us for a while,\u201d he concluded.<\/p>\n A number of analysts have predicted that the U.S. will be in recession. Deutsche Bank<\/a> said there will be a major U.S. recession next year. Blankfein\u2019s own investment bank, Goldman Sachs<\/a>, said the odds of a recession happening in two years is 35%. Furthermore, Bank of America<\/a>\u2018s strategist warned in April that a \u201crecession shock\u201d is coming.<\/p>\nGoldman\u2019s Blankfein Warns About a Recession<\/h2>\n
\n
\n