By Weston Blasi
That was Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS -1.69% 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.
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“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.
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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 -0.21% dropped over 1,100 points , or 3.5%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.23% moved 4% lower and the tech-heavy Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.15% dropped 4.5%.