US economy seen tipping into recession in 2023 – Goldman Sachs

Speaking at a Wall Street Journal (WSJ) event on Tuesday, Goldman Sachs Chief Executive Officer (CEO) David Solomon said that he sees about 65% odds of the US economy entering a recession in 2023.

Key quotes

“Probability of a “soft landing”, that is, a slowdown in inflation that doesn’t tip the economy into recession for the US economy at 35%.”

“I would define a soft landing as we get inflation back close to 4% inflation, maybe we have a 5% terminal rate and we have 1% growth”

“I think there’s a reasonable possibility we could navigate a scenario like that.”

“But I also think there’s a very reasonable possibility that we could have a recession of some kind.”

He said “stocks will be lower, oil lower and the US Dollar to rise slightly.”