Former Goldman Sachs CEO Lloyd Blankfein is warning people to prepare for an economic recession.
Asked by CBS’ Margaret Brennan about whether a recession was headed Americans’ way, Mr. Blankfein said it is time to brace for a worsening economic future although a recession is not guaranteed.
“It’s definitely a risk,” Mr. Blankfein said on “Face the Nation.” “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.”
Mr. Blankfein, now senior chairman at Goldman, served as CEO from 2006 through September 2018 and witnessed the 2008 economic downturn up close. Goldman took $10 billion from the Treasury Department’s Troubled Asset Relief Program in 2008 and later repaid the funds it received with interest, according to NPR.
Mr. Blankfein told CBS on Sunday that some of the rising costs of inflation will stick around and hurt Americans on the bottom of the economic ladder.
“It’s going to be hard for people to have savings, but they already have savings,” he said. “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.”
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