Yahoo Finance

Goldman Sachs sees the risk of US entering a recession

Brian Sozzi · Anchor, Editor-at-Large
Fri, March 11, 2022, 6:41 AM · 2 min read

A recessionary storm could be forming off into the distance amid a host of inflationary and geopolitical concerns, warns strategists at Goldman Sachs.

"We now see the risk that the U.S. enters a recession during the next year as broadly in line with the 20-35% odds currently implied by models based on the slope of the yield curve," said Goldman Sachs Chief Economist Jan Hatzius.

The top Wall Street strategist cut his 2022 U.S. GDP forecast to a growth of 1.75% from 2% previously. Consensus estimates are looking for a 2.7% increase.

Multiple factors have taken shape to push up U.S. recession calls across the Street. ... Brent crude oil prices traded around $113 a barrel Friday as traders continued to digest the Biden administration's ban of imports of Russian oil, liquefied natural gas and coal in response to the country's war on Ukraine.

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