2023-07-04 19:43:05
“After the recent upbeat economic reports, we may not have either a hard landing or a soft landing. We may NOT have a landing,” Blankfein said on Twitter.
On Wednesday, Blankfein also questioned arguments that the United States was heading for a hard landing, saying that the growth of the US economy, combined with rising payrolls, called into question the high probability of recession that prices the housing market. bonds and other economists.
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“Conditions are concerning, BUT: not consistent with what would be expected for a soft landing?” Blankfein said in Wednesday’s tweet.
Lloyd Blankfein, former CEO of Goldman Sachs Inc.
Data on Friday showed that US consumer spending has essentially stagnated since a surge in January, which may help ease price pressures but might also set the economy up for a sharp slowdown.
On Friday, Federal Reserve Chairman Jerome Powell’s favorite inflation gauge also hit a 10-month low, a day following he suggested two more rate hikes this year would probably be needed to bring inflation down.
Inflation cools, spending slows; economy loses strength
Key indicators of US inflation cooled in May while consumer spending stagnated, suggesting that the main engine of the economy is starting to lose some momentum.
The personal consumption expenditures price index, one of the Federal Reserve’s favorite inflation gauges, rose 0.1% in May, according to data released Friday by the Commerce Department. In the interannual comparison, the indicator fell to 3.8%, the lowest annual increase in more than two years.
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Excluding food and energy, the so-called core PCE price index rose 0.3% vs. the prior month and 4.6% vs. May 2022. That’s in line with year-on-year readings at the end of 2022 and shows minimal relief from elevated underlying price pressures. Economists consider this to be a better indicator of underlying inflation.
Price-adjusted consumer spending was little changed following a downwardly revised 0.2% advance in April. Between February and May, household spending essentially stagnated following rising earlier in the year.
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