Appearing Wednesday on CNBC’s Squawk Box, Goldman Sachs CEO David Solomon said his bank is warning clients of a possible recession.
A transcript is as follows:
ANDREW ROSS SORKIN: When clients call you and say, ” What’s the next 18 months from your perspective, the house view, the David Solomon view, what does it look like?” Are we in a recession?
DAVID SOLOMON: The house view is slowing economic activity, higher rates, and probably a 30 percent chance of recession as you look forward to the next 12 to 24 months. What I’m advising clients is we’re going to tighten economic conditions, it’s going to have an impact on a number of things in your business that are hard to predict. You have to be thinking about your risk appetite and planning, and think about the fact that there’s a reasonable chance at some point that we have a recession.