Goldman CEO says U.S. recession to be well-grounded in 2023

The U.S. economy may fall back into recession next year. This is stated by David Solomon, Goldman Sachs CEO, in an interview with Reuters. However, there is a chance of the regulator restraining inflation without crippling the country’s economy. 

On Tuesday, Oct. 18, Goldman Sachs released its third-quarter earnings report. After the data being published, David Solomon said the U.S. recession is coming. But there is still a possibility of a favorable outcome for the economy. 

The statement by the Goldman Sachs chief executive followed comments from Jamie Dimon, CEO of JPMorgan & Co., expressing caution about the economic outlook. Their counterpart, Brian Moynihan of Bank of America Corp. had more optimistic views. He said the financial standing of consumers and businesses is fairly robust. 

Fitch Ratings announced Tuesday the U.S. recession risks to be rather high, particularly in the second quarter of 2023. But the soundness of consumers' finances is likely to mitigate its effects. According to Olu Sonola, head of regional economics at Fitch, the country's recession will be relatively mild by historical standards. Its resemblance to the recession of 1990-1991 occurred a year earlier when the Federal Reserve (Fed) tightened monetary policy, is undeniable.