Former Goldman Sachs CEO warns Americans to prepare for economic downturn.
Former Goldman Sachs CEO Lloyd Blankfein said people should be prepared for an economic downturn amid high inflation and record gasoline prices.
When asked during a CBS News interview on Sunday, former CEO Lloyd Blankfein said Americans should prepare for a bleak economic future.
Blankfein was the head of investment banking firm Goldman Sachs between 2006 and 2018, including during the 2008 economic crisis.
“It’s definitely a risk,” he said. “If I was running a large company, I would be very prepared for this. If I was a consumer, I would be prepared for it.
Some of the poorest Americans will feel the worst effects of inflation, he said, adding that a recession is “a very, very high risk factor.”
“It’s going to be difficult for people to have savings,” Blankfein said. “But if they already have savings, they’re not necessarily going to increase them quickly because of inflation. »
According to data provided by AAA Automotive Service, the average price of a gallon of regular gasoline nationwide is around $4.47, with prices reaching nearly $6 per gallon on average in California. At the same time, parents expressed concern about shortages of infant formula, with consumer prices rising about 8.3% in April from a year ago.
“To what extent can we now rely on these supply chains that are not within the borders of the United States and that we cannot control? Blankfein also said. “Do we really think we’re getting all our semiconductors from Taiwan, which again is an object of China,” he added, apparently referring to the Chinese regime’s threats against the self-governing country these days. last months.
“But I think the Fed has very powerful tools. It’s hard to fine-tune them, and it’s hard to see the effects of them fast enough to change them, but I think they respond well,” he continued.
Last week, Federal Reserve Chairman Jerome Powell acknowledged that raising interest rates “will include some pain,” but added that a far worse outcome would be if prices continue to rise.
What the former big boss of the bank that runs the world has just told us is that we are obviously going to suffer from a very big recession with a lot of inflation.
The depletion effect can be enormous and very rapid.
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Source Epoch Times via Reuters.com here
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