The United States may enter a recession by the second quarter of 2023, but Goldman Sachs Chief Executive Officer David Solomon told Reuters that inflation can be controlled without incurring too much damage to the economy.
“There’s a reasonable chance of a recession in the U.S., but it’s not certain. I could still see a scenario with a soft landing,” said Solomon.
Solomon’s remarks matched those of JPMorgan & Co (JPM.N) CEO Jamie Dimon, who expressed concern about the economy. Brian Moynihan, CEO of Bank of America Corp (BAC.N), has been more upbeat, citing consumers’ and companies’ good finances.
According to Fitch Ratings, the US economy will enter a recession in the second quarter of 2023, although healthy US consumer finances will help mitigate the damage.
“Fitch expects the U.S. economy to enter genuine recession territory — albeit relatively mild by historical standards — in 2Q23.”
“The projected recession is quite similar to that of 1990–1991, which followed similarly rapid Fed (Federal Reserve’s) tightening in 1989–1990,” said Olu Sonola, head of the rating agency’s U.S. regional economics in a report.
