Economists at Goldman Sachs Group Inc., led by Chief Economist Stephen Hughes, raised the chances that the U.S. will enter a recession within the next 12 months to 35 percent from 25 percent previously. “Near-term uncertainty has increased around the economic impact of stress on small banks,” they noted.
Goldman Sachs Group Inc. (GS) sees a recession as more likely now.
Economists at the bank, led by chief economist Jan Hatzius, raised the chance of the U.S. entering a recession within the next 12 months to 35% from 25% previously. “The impact on the economy of the pressures faced by small banks contributes to heightened near-term uncertainty,” they noted.
Goldman isn’t alone in predicting a recession. Even before this past week’s crisis, economists had become increasingly pessimistic about growth because of rising interest rates. Economists polled by The Wall Street Journal in January projected a 61% chance of a U.S. recession within the next 12 months, on average.
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Goldman Sachs Group Inc. (GS) sees a recession as more likely now.
Economists at the bank, led by chief economist Jan Hatzius, raised the chance of the U.S. entering a recession within the next 12 months to 35% from 25% previously. “The impact on the economy of the pressures faced by small banks contributes to heightened near-term uncertainty,” they noted.
Goldman isn’t alone in predicting a recession. Even before this past week’s crisis, economists had become increasingly pessimistic about growth because of rising interest rates. Economists polled by The Wall Street Journal in January projected a 61% chance of a U.S. recession within the next 12 months, on average.