Goldman Sachs chief warns ‘difficult economic times are ahead’

He expressed his concerns that the risks of inflation, a change in monetary policy and Russia’s invasion of Ukraine could endanger the global economy.

The head of the popular investment bank, Goldman Sachs Group, John Waldron, agreed this week with CEO of JPMorgan, Jamie Dimon, warning that more difficult times lie ahead amid a series of shocks rocking the global economy.

“This is one of the most dynamic and complex, if not the most, environments I have seen in my career,” Waldron said, speaking at an investor conference on Thursday, June 2. “The confluence of shocks into the system is unprecedented.”

Waldron’s comments reflected the stern warning made by Dimon, CEO of JPMorgan Chase & Co., Which warned investors to prepare for a “hurricane” amid an unprecedented mix of challenges.

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Waldron said he would avoid “using any climate comparisons” but expressed concerns that inflation risks, monetary policy changes and Russia’s invasion of Ukraine could put the global economy at risk.

“We expect difficult economic times,” Waldron said. “There is no doubt that we are witnessing a more difficult capital market environment,” he added.

Waldron emerged as one of the Fed’s harshest critics in the banking sector earlier this year, attacking the central bank for what he saw as a lack of independence and a determination to resist pressure to take action to tame the highest rate of inflation in 40 years.

John Waldron seemed more confident about his company’s ability to continue to generate high profits during the recession. “Whatever the economic environment, we will do well,” he said.

Key words

business economic crisis

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