16 May, 2022
“There is a “very, very high risk” factor for an economic recession,” Blankfein warned in an interview with CBS.
The former Goldman Sachs executive said that increasing inflation and interest rates could lead to an economic recession.
When asked if the recession could be avoided, Blankfein said, there’s a narrow path.
Earlier, Federal Reserve Chairman Jerome Powellthe said that Fed’s strategy of raising interest rates will “include some pain.”
Bankfien agrees with Powell’s assessment, and said some of the inflationary effects the economy is enduring now will be “sticky.”
Blankfein was the CEO of Goldman Sachs during the 2007-08 economic recession.