Goldman Sachs CEO David Solomon became the latest investment bank bigwig to offer a gloomy economic forecast Tuesday, as most concur the Federal Reserve's fight to tackle inflation and elevated prices will likely cause the US to enter a recession.
Solomon thinks there's a good chance of a recession in the US.
Solomon told CNBC that there is a good chance that the United States will have a recession.
Jamie Dimon told CNBC it was likely the U.S. would enter a recession in six to nine months.
The CEO of Morgan Stanley said in June that there was a 50% chance of a recession.
During her company's earnings call Friday, Jane Fraser predicted a "mild recession in the second half of '23' in the US."
Bank of America CEO Brian Moynihan said during the bank's earnings call Monday that the market is already "baking in" a recession and that US consumers will remain resilient.
The Fed is trying to bring inflation down to its 2% target because inflation is at a 40-year high of 8%. The U.S. economy technically entered a recession earlier this year after it had two straight quarters of negative GDP growth. The S&P 500 is down 23% so far this year and is on pace for its worst year since 2008.
In Friday's earning call, Dimon said that they would have good returns in a recession.
Goldman, Citigroup, Bank of America, and Wells Fargo are all up 8% or more in the last week, all out pacing the market, as investors agree with Dimon.
The World Bank warns of the real danger of a global recession.
The worst is yet to come, according to the International Monetary Fund.
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