Goldman Sachs has doubled the likelihood of the United States economy suffering a recession in the next 12 months as the Federal Reserve takes aggressive action to combat surging price growth.
The Wall Street investment bank now puts the chances of an American recession over the next year at 30 per cent, up from 15 per cent, after its economists became “increasingly concerned” that the Fed will accept a sharp slowdown in growth to curb inflation.
Prominent executives also continue to deliver bearish assessments. Elon Musk, the Tesla chief executive, described the prospect of recession as “inevitable at some point”. “As to whether there is a recession in the near term, that is more likely than not,” he told the Qatar Economic Forum in Doha.