Wednesday, May 29, 2024

Good Chance of U.S Recession: Goldman Sachs CEO.

David Solomon, the CEO of Goldman Sachs, believes there is a good chance of a recession in the United States. He said the environment heading into 2023 is one that businesses, firms, institutes, banks, and people have to be cautious and prepared for.

During an interview on CNBC’s Squawk Box, Solomon warned of more volatility on the horizon. He said there is a good chance that there is a recession in the U.S. But the executive also said that fundamentals don’t really change. Solomon highlighted that leadership does move to different places, but it’s the same leadership. He said investors need to be conscious of the challenges ahead. Solomon explained that in an environment where inflation is more embedded and growth is slower, asset appreciation will be tougher. He said public policy in areas such as energy and immigration will be key in determining where the U.S economy is headed.

The global investment bank boss noted the tightening of financial conditions and rising inflation in recent months. The Federal Reserve, in an effort to tackle inflation, has been aggressively raising interest rates since March. But markets reacted negatively, stocks tumbled and Treasury yields surged. Jamie Dimon of JPMorgan Chase also sounded caution. He said inflation, interest rates, and the war in Ukraine are threatening the economy.

In August, Goldman Sachs stated that any post-COVID U.S recession would likely be mild, with a limited increase in the unemployment rate of around 1%. It believes this would be unprecedented in post-war U.S history.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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