Goldman Sachs’ Senior Chairman Lloyd Blankfein Warns of ‘Very, very high’ risk of Recession

According to Goldman Sachs Group Senior Chairman Lloyd Blankfein, there is a “very, very high-risk factor” that the United States is heading for a recession. Mr. Blankfein gave this stark warning on May 15, 2022, during an interview on CBS News’ Face the Nation.’

In a note to Goldman clients released on May 15, Goldman cut its 2022 U.S. growth outlook to 2.4% from 2.6% previously and 1.6% from 2.2% for 2023, noting fears over an uncertain growth path and constricting financial conditions.

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 people as prices rise.

Blankfein said that while inflation is being stoked by extra fiscal spending prompted by the COVID-19 pandemic, he doesn’t necessarily blame the government for doing all it could to prevent another financial meltdown. Last week, Fed Chairman Jerome Powell admitted 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.”


Related Post


Learn How A Precious Metals IRA Can Secure Your Retirement

The precious metals market may seem intimidating, but it’s not as it seems. Our team has compiled a summary of our tips and information into a free guide so you can learn how to begin securing your future.


We Will Guide You Every Step Of The Way


By clicking the button above, you agree to our Privacy Policy and Terms of Service and authorize Oxford Gold or someone acting on its behalf to contact you by text message, ringless voicemail, or on a recorded line at any telephone or mobile number you provide using automated telephone technology, including auto-dialers, for marketing purposes. No purchase required. Message and data rates may apply. You also agree to receive e-mail marketing from Oxford Gold, our affiliated companies, and third-party advertisers. To opt-out at any time click here or reply STOP to opt-out of text messages.