Former Goldman Sachs CEO Lloyd Blankfein says economy is at risk of recession: Deadline

As inflation and interest rates rise, there is a “very, very high risk” factor for an economic downturn. That’s according to former Goldman Sachs CEO Lloyd Blankfein, who addressed the issue Sunday on the CBS talk show. take on the nation.

It can be avoided? There is a way. It’s a narrow road,” said Blankfein, who retired from Goldman Sachs but still holds the title of senior president.

“But I think the Fed has very powerful tools. It’s hard to fine-tune them, and it’s hard to see their effects quickly enough to alter them, but I think they’re responding well. It’s definitely a risk.”

Blankfein’s comments follow similar sentiments from Federal Reserve Chairman Jerome Powell, who said last week that the Fed’s strategy of raising interest rates “will include some pain.”

“We fully understand and appreciate how painful inflation is,” Powell said in an interview with the national Marketplace radio show.

Powell said the process of curbing inflation includes raising interest rates for at least the next two Federal Reserve meetings. “The process of bringing inflation down to 2% will also include some pain,” he admitted. “But ultimately the most painful thing would be if we didn’t manage to deal with it and inflation took root in the economy at high levels, and we know what that’s like. And that’s just people losing the value of their paycheck.”

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