The United States should prepare for a recession, the chairman and former CEO of Goldman Sachs, Lloyd Blankfein, warned on Sunday.
In an interview on CBS News’ “Face the Nation,” Blankfein said there was definitely a risk of a recession and businesses and consumers should prepare for it.
“It’s definitely a risk. If I was running a large company, I would be very prepared for this. If I were a consumer, I would prepare for it. But nothing is certain,” he added during the “Face the Nation” show.
Blankfein said he thinks the Federal Reserve “has very powerful tools” to influence the economy, but noted that it can be “difficult to see the effects quickly enough to change them.” »
Fed Chairman Jerome Powell, who was confirmed last week by the Senate for a second term, said a “soft landing” of lowering inflation without triggering a recession would be ” quite difficult. »
The annual inflation rate has recently fallen slightly, from 8.5% in March to 8.3% in April, the highest rate in four decades. President Joe Biden has said tackling inflation is his top national priority.