Goldman Sachs Warns About Rising Recession Risk in the US
<p>According to the note released by Goldman Sachs on Monday, it is cutting its growth forecasts for the U.S. economy, cautioning investors that the risk of a recession is rising.</p>
<p>The analysts highlighted their growing concerns that the Fed will feel compelled to respond forcefully to high inflation expectations in case energy prices increase further, even if activity slows sharply.</p>
<p>The analysts now assign a 30% probability of the economy entering a recession over the next year, compared to their previous estimate of 15%. Furthermore, they assign a 25% conditional probability of a recession in a year-later period if it is avoided next year.</p>
