Ex-Goldman Sachs CEO Warns Americans to Prepare for Economic Recession

Contact Your Elected Officials
The Epoch Times Header

Former Goldman Sachs CEO Lloyd Blankfein says people should be prepared for an economic recession amid elevated inflation and record-high gas prices.

Blankfein, who led the investment banking firm between 2006 and 2018, said Americans should brace for a dim economic future, he told CBS News’ “Face the Nation” in an interview on May 15. He now holds the title of senior chairman.

“It’s definitely a risk,” he said. “If I were running a big company, I would be very prepared for it. If I was a consumer, I’d be prepared for it, but it’s not baked in the cake.”

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 hard for people to have savings,” Blankfein said. “But [if] they already have savings they’re not going to necessarily increase it quickly because of inflation. But they’re starting in a much better place than we were then.”

According to data provided by automotive service AAA, the average price for a gallon of regular gas nationwide stands at around $4.47, with prices hitting nearly $6 per gallon on average in California. At the same time, parents have expressed concern about baby formula shortages as consumer prices rose by about 8.3 percent in April as compared with a year ago.

“How comfortable are we now to rely on those supply chains that are not within the borders of the United States and we can’t control?” Blankfein said. “Do we feel good about getting all our semiconductors from Taiwan, which is again, an object of China,” he added, apparently referring to the Chinese regime’s threats against the self-governed country in recent months.

“But I think the Fed has very powerful tools. It’s hard to finely tune them, and it’s hard to see the effects of them quickly enough to alter it, but I think they’re responding well. It’s definitely a risk.”

Last week, Federal Reserve Chairman Jerome Powell acknowledged that increasing interest rates will “include some pain,” but added that a far worse outcome would be for prices to continue spiking.

In March, the Fed approved a quarter-percentage-point rate increase. But some analysts say they are concerned that policymakers have fallen too far behind to curb price increases without the sort of sharp rate hikes that might trigger a recession.

By Jack Phillips

Read Original Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

A Few Fun Alternatives to the”Gory Stuff” at Halloween

Halloween has gone off the rails with gore through the decades.  But there are ways to enjoy the "scary stuff" without giving into darker, pagan alliances.  

Germany Stands To Lose & Poland To Gain From The EU’s Latest Energy Move

The US is geostrategically re-engineering Europe at Germany’s expense in order to facilitate Russia’s post-Ukraine containment.

EBT Serfs Threaten Violent Mass-Shoplifting Spree if Food Stamps Cut

The EBT serfs of the underclass may be in for a rough ride come November, when mommy government is slated to wean them off the teat of state.

The Real Reason Why the Left is Unhinged

Nine out of thirteen of the original states required you to be a Bible believing Christian to serve in government at the time of the founding.

The Sacrificial Lambs of the Riyadh Standup Scene

Which is the greater injustice: jailing political dissidents, or millions dead from pharma crimes with no accountability for those responsible?

ICE Tracker Planned by Democrats Could Endanger Agents, Bondi Says

AG Pam Bondi warned Democrats’ plan for an online platform tracking ICE in LA could put federal agents at risk of harassment or violence.

Trump Responds to Report He’s Seeking $230 Million From DOJ for Past Investigations

President Trump acknowledged the odd position he’s in given that the lawsuit was launched when he was a private citizen: ‘I’m suing myself.’

Food, Drink Companies Launch New Group in Bid for National Food Standards

PepsiCo and major food makers launched a coalition urging national standards for ingredient safety and labeling to replace inconsistent state regulations.

With CDC Reports on Hold Amid Shutdown, Private Groups to Launch Alternative

Private organizations are planning an alternative to the CDC’s weekly MMWR publication, sometimes known as the voice of the public health agency.

Trump Calls off Meeting With Putin, White House Says

White House says Secretary Rubio and Russia’s Lavrov had a productive call; no further meetings or Trump-Putin talks are planned soon.

President Signs Rare Earth Agreement With Australia’s PM

President Trump hosted Australian PM Albanese at the White House, where both leaders signed a new agreement on rare earth mineral cooperation.

Trump Says Insurrection Act Is ‘Strongest Power a President Has’

President Trump detailed plans to invoke the Insurrection Act to address rampant crime, calling it the “strongest power a president has.”

Army Corps of Engineers to Pause $11 Billion in Projects During Shutdown: Vought

Russ Vought, director of the White House’s OMB, has added to the growing pile of federal projects paused during the government shutdown.
spot_img

Related Articles

Popular Categories

MAGA Business Central