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May 20, 2022, 10:08 a.m. EDT

‘30% chance of recession’ within the next 12 to 24 months, Goldman CEO says

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By Weston Blasi

That was Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS +5.79% CEO David Solomon talking about the U.S economy during a couple of recent interviews.

Solomon, who has been the chief executive officer at Goldman Sachs G S since 2018, made the prediction in a telephone interview with Bloomberg on Tuesday. He expanded on it during a CNBC interview on Wednesday.

See also: The technician who called the 2020 market bottom says a ‘shocking rally’ is in store

“You have to think about the fact that there’s a reasonable chance at some point that we have a recession or we have, you know, very, very slow, sluggish growth,” Solomon said.

But he also cautioned that a recession is far from a sure thing.

“That doesn’t mean that that’s definitely going to happen,” he continued. “But certainly, I think that if you’re running a significant enterprise, you have to be looking through a lens with a little bit more caution right now than you might have been when we were sitting here a year ago.”

Solomon also noted that the recent “tightening” of economic conditions has been predictable based on inflation data and the interest rate hikes by the Federal Reserve.

See: U.S. stocks climb after China rate cut, as Dow heads for 8th straight losing week

This comes after Federal Reserve Chairman Jerome Powell said he is determined to create a “ softish landing ” for the U.S. economy.

“What we need to see is inflation coming down in a clear and convincing way and we’re going to keep pushing until we see that,” said Powell on Tuesday .

These comments come as the U.S. markets were down on Wednesday after the brief uptick on Tuesday . On Wednesday, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +2.68%   dropped over 1,100 points , or 3.5%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +3.06%   moved 4% lower and the tech-heavy Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +3.34% dropped 4.5%.

$ 302.75
+16.58 +5.79%
Volume: 3.98M
June 24, 2022 4:00p
P/E Ratio
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US : Dow Jones Global
+823.32 +2.68%
Volume: 470.38M
June 24, 2022 5:05p
+116.01 +3.06%
Volume: 3.46B
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US : Nasdaq
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June 24, 2022 5:16p

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