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Bad dollar! The former CEO of Goldman Sachs warned that the risk of economic recession in the United States is very, very high

发布时间：2022-08-25 浏览：115

Lloyd Blankfein, former CEO of Goldman Sachs, said that the U.S. economic recession is undoubtedly a risk, because the Federal Reserve tightened interest rates to fight inflation, and the road ahead is narrow.

He said that the economic recession was a very, very high risk factor, but it was not baked in the cake.

He added that businesses and consumers need to be prepared for this possibility. "If I run a large company, I will be fully prepared for it. If I am a consumer, I will be ready," he said on Sunday

The Fed has the right tools to deal with inflation, but its actions will take time to work.

He said, "there is a road, which is a narrow road." After retiring as CEO in 2018, he is now the senior chairman of Goldman Sachs.

He said, "but I think the Fed has very powerful tools, so it is difficult to fine tune them, and it is difficult to quickly see their effects to change it,

But I think they reacted well. Recession is definitely a risk. "

At the same time, Goldman Sachs lowered its growth forecast for the United States in 2022 and 2023 from 2.6% and 2.2% to 2.4% and 1.6% respectively. But economists at Goldman Sachs pointed out that as the Federal Reserve tightens monetary policy, the unemployment rate is likely not to soar.

Goldman Sachs economists said in a report on Sunday: "the slowdown in economic growth should help reduce job vacancies and may also slightly push up the unemployment rate, especially considering that the vacancy rate will fall only when the unemployment rate soars in the recession.

"We are still optimistic that a sharp rise in the unemployment rate can be avoided, especially because usually, when the vacancy rate is very high, as today, the vacancy rate drops more and the unemployment rate rises less." It is expected that by the end of next year, the unemployment rate will rise to 3.7%.