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HomeUncategorizedGoldman Sachs chief warns of 'high probability' of US recession

Goldman Sachs chief warns of 'high probability' of US recession


He believes that the Government’s policy, especially in the areas of energy and immigration, will play a key role in determining whether this scenario can be avoided.

The CEO of Goldman Sachs, David Solomon, warned this Tuesday that the US economy could face a recession that would hamper investment and business during an interview on CNBC’s ‘Squawk Box.’ there is more volatility on the horizon. That does not mean for sure that we have a really difficult economic scenario. But in the distribution of the results, there is a high probability that we have a recession in the US .UU.”. Referring to the situation in which the country’s companies will find themselves, he advised them to be “cautious”, adding that “if you were running a business based on risk, it is time to think more carefully about your risk box, your risk appetite.

Fuerte caída en Wall Street ante los temores de una recesión en EE.UU.

At the same time, Solomon stressed that a recession could affect stocks for years instead of of months. He explained that it would be very difficult to assess future risks and stressed that “in an environment where inflation is more entrenched and growth is slower, asset appreciation will be more difficult “.

Despite the high probability of a bad scenario for the US economy, the businessman stated that Government policy in areas such as energy and immigration would play a key role in determining whether the US will be able to overcome anticipated economic difficulties.

Solomon is not the first executive to forecast a US recession. The US and the global economy enter a recession within 6 to 9 months. At the same time, economists at Bloomberg published this Monday a model that shows a probability of 100% of a recession in the country next year.


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