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Ex-Goldman CEO Blankfein says recession possibility is 'very high risk factor'

Tan KW
Publish date: Mon, 16 May 2022, 02:27 PM
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WASHINGTON: Former Goldman Sachs CEO Lloyd Blankfein said on Sunday (May 15) that he believes the economy is at risk of possibly going into a recession, as the US Federal Reserve continues to raise interest rates to tackle rising inflation.
 
Speaking on "Face the Nation" on CBS, Blankfein said a recession is "a very, very high risk factor".
 
"There's a path. It's a narrow path," said Blankfein, who retired from Goldman Sachs several years ago and now holds the title of senior chairman.
 
"But I think the Fed has very powerful tools. It's hard to finely tune them, and it's hard to see the effects of them quickly enough to alter it, but I think they're responding well. It's definitely a risk."
 
Last week, Federal Reserve Chairman Jerome Powell acknowledged that increasing interest rates will "include some pain" but added that a far worse outcome would be for prices to continue spiking.
 
In March, the Fed approved a quarter-percentage-point rate increase. But some analysts say they fear policymakers have fallen too far behind to curb price increases without the sort of sharp rate hikes that might cause a recession.
 
Blankfein told CBS he agrees with Powell's assessment, and said some of the inflationary effects the economy is enduring now will be "sticky".
 
"Overall for individuals, and certainly for individuals at the bottom quartile of the ... pie sharing, it's going to be quite difficult and oppressive," he said.
 
Blankfein served as CEO at Goldman Sachs from 2006 through 2018, a tenure that included the tumultuous financial crisis that led the US government to implement a bank bailout programme.
 
 
 - Reuters
Discussions
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Tobby

Yeah, it's really open secret! Recession will hit us! Globally!

2022-05-16 15:04

investor2021trading

PhD Economist Warns: "New Normal will be Stranger, More Extreme."

Nomi Prins is an American author, journalist, and public speaker who writes about Wall Street and the US economy. Prins worked as a managing director at Goldman Sachs for 2 years and as a senior managing director at Bear Stearns for seven years, and was a senior strategist at Lehman Brothers.

Something strange is happening behind the scenes in US financial system.

From d stage, Yellen called for world leaders to commit to a US150 trillion "global transition" of US economy. Bank of America has committed, along with 131 countries, 234 cities, and 695 of the world’s biggest companies. Several billionaires, led by Jeff Bezos and Elon Musk, have invested in this ‘transformation’ as well.

And what does it mean for your money? What Nomi Prins discovered is startling!
It has nothing to do with a market crash... a new reserve currency... or the end of fiat.

Prins says:
While most Americans are distracted by mainstream media headlines, I’ve found evidence the elites are spending $150 trillion to ‘transform’ our economy into something we didn’t vote on... didn’t ask for... and very few are prepared for. In essence, we’re about to see a stranger, more extreme ‘new normal’ in America. Most people will be shocked when they see what happens in the months ahead”

2022-05-16 18:48

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