Over the last couple of months, the US government has had to deal with immense pressure on its economy. High inflation and interest rates led the entire globe to believe that the US was heading toward a recession. This notion was put forth by executives of prominent banking giants. Now, the CEO of Goldman Sachs, David Solomon seems to be foreseeing a recession as well.
Appearing in a recent interview with CNBC, Solomon noted that there was a “good chance” that there could be a recession in the US.
When asked about the buzz around the US recession, the Goldman Sachs CEO urged the community to stay cautious if they were running a risk-based business. He added,
“I think you have to expect that there’s more volatility on the horizon.”
However, he went on to say that this did not mean that there was an extremely difficult economic situation. However, in the distribution of outcomes, the chances of a recession were prominent.
It should be noted that the CEO of JPMorgan Chase Jamie Dimon previously suggested that there would be a recession in six to nine months.
Will Joe Biden’s views on recession change?
Just last week, President Joe Biden negated the high chances of a recession. Speaking to CNN Biden stated,
“It hadn’t happened yet. It hadn’t… I don’t think there will be a recession. If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”
Goldman Sachs’ recession prediction wasn’t limited to the US. Just yesterday, the firm noted that the UK recession would get worse. While both inflation and interest rates would be lower, the country is expected to veer into a deeper recession. The report read,
“Folding in weaker growth momentum, significantly tighter financial conditions, and the higher corporation tax from next April, we downgrade our UK growth outlook further and now expect a more significant recession.”