05/19/2022
Goldman Sachs CEO: U.S. at risk of recession, inflation "very punitive"
Goldman Sachs CEO David Solomon said the bank's clients are preparing for slower economic growth and falling asset prices, all because of the burden of "extremely punishing" inflation on the economy.
"The economy has the potential to fall into recession," he said in a phone interview, although he said he wasn't overly concerned about that risk, but cited estimates from economists like his own firm, Jan Hatzius, that the risk of recession over the next 12 to 24 months is at least 30 percent. He is watching closely to see if credit spreads begin to widen more significantly.