David Solomon, CEO of the global investment bank Goldman Sachs, sees a high probability that the US will fall into recession. He stressed that “the environment going into 2023 is one that we need to be cautious and prepared for.”
Goldman Sachs CEO Warns of U.S. Recession, Advises Investors to Be Cautious
Goldman Sachs CEO Warns of U.S. Recession
David Solomon, CEO of Goldman Sachs, warned of a U.S. recession in a Tuesday CNBC interview with CNBC on Tuesday, warned about the direction of the U.S. economy. He said.
I think now is the time to be cautious. If you’re in a risk-based business, I think it’s time to think more carefully about your risk box and your risk appetite.
Goldman’s CEO continued, “You should expect more volatility right now. That said, we don’t have any really difficult economic scenarios waiting in the wings.” However, there is a good chance of a recession in the U.S. due to the distribution of outcomes.”
However, the executive noted.
“Fundamentals don’t really change. Leadership will move to a different place, but it’s the same leadership.”
Solomon explained that investors need to be aware of the challenges ahead, elaborating that.
The environment for 2023 must be prudent and prepared.
“In an environment where inflation is more entrenched and growth is slower, you see, asset appreciation will be tougher.” He cautions. “Will it be rooted in such a decadal scenario? We don’t know.”
The Goldman boss elaborated that public policy in areas such as energy and immigration will be key to the future of the US economy. He concluded.
If you are a risk manager now, I think you have to be prepared for a more challenging environment in 2023.
Goldman Sachs reported its third quarter results on Tuesday. Profits fell 43% to $3.07 billion, or $8.25 per share, but beat analysts surveyed by Refinitiv’s forecast of $7.69. Sales also fell 12% to $11.98 billion.
Solomon also officially announced its corporate reorganization on Tuesday. The CEO stated.
Today we enter the next phase of our growth and introduce a restructuring of our business that will allow us to further leverage One Goldman Sachs’ dominant operating model.
“We are confident that our strategic evolution will deliver higher, more sustainable returns and unlock long-term value for our shareholders,” he affirmed.
Solomon’s counterpart at JPMorgan Chase, Jamie Dimon, recently warned that a recession could hit the US economy in six to nine months. In a recent survey, 98% of CEOs said they are preparing for a U.S. recession. President Joe Biden, however, is not worried and said over the weekend that “the economy is strong as hell.”
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