Goldman Sachs Chairman Warns of ‘Unprecedented’ Economic Shocks and Harder Times Ahead

The chairman and chief operating officer of global investment bank Goldman Sachs has warned of unprecedented economic crises and tougher times ahead. His statement echoes JPMorgan CEO Jamie Dimon’s warning that a “hurricane” is coming.

Warning from the chairman of Goldman Sachs on the US economy

Goldman Sachs Chairman and Chief Operating Officer John Waldron shared his outlook on the US economy at a banking conference on Thursday.

Commenting on current economic conditions, he said: “This is one of the most complex and dynamic environments I have seen in my career, if not the most complex.” The senior executive of Goldman Sachs elaborated:

Obviously we’ve been through many cycles, but the confluence of the number of impacts on the system, to me, is unprecedented.

Waldron’s comments echoed a similar warning from JPMorgan Chase CEO Jamie Dimon, who said on Wednesday that a “hurricane” was coming. “You better get ready,” he advised.

Noting that he will refrain from “using any climate analogies,” the Goldman Sachs chairman shared his concern that risks from inflation, changing monetary policy and the war between Russia and Ukraine could hurt the global economy.

Waldron continued:

We look forward to more difficult economic times ahead. There is no doubt that we are seeing a tougher capital markets environment.

The Goldman executive also named several alarming factors hurting the economy, including a commodity shock and an unprecedented amount of monetary and fiscal stimulus.

A growing number of people have sounded the alarm about the US economy, predicting that a recession is imminent.

This week, Tesla CEO Elon Musk said he has a “super bad feeling” about the economy, prompting President Joe Biden to respond. Musk also said that we are in a recession that could last 12 to 18 months.

In addition to Musk, others who have warned of a coming recession include Big Short investor Michael Burry and Soros Fund Management CEO Dawn Fitzpatrick. However, one of the grimmest predictions came from Rich Dad Poor Dad author Robert Kiyosaki, who said markets are crashing and a depression and civil unrest are looming.

What do you think of the comments from the CEO of Goldman Sachs? Let us know in the comments section.

kevin helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection between economics and cryptography.

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