“There is a reasonable chance of a recession in the US, but it’s not certain,” Solomon said Tuesday after the company released third-quarter results. “I could think of another soft landing scenario.”
Solomon’s comments joined those of JPMorgan & Co CEO Jamie Dimon in expressing caution about the economic outlook. Her counterpart at Bank of America Corp, Brian Moynihan, was more optimistic, citing healthy consumer and corporate finances.
Solomon also spoke about the challenges faced by private equity buyers and said deal activity in the buyout sector has slowed.
“Private equity activity is reset at times like this because values have to go down because funding costs have gone up,” he said. “So there’s less private equity activity right now.” A sharp decline in large private-equity deals helped slow global deals, with third-quarter activity jumping 54% to $716.62 billion from $1.56 trillion in the same period, according to Dealogic data of the previous year declined.
https://economictimes.indiatimes.com/markets/stocks/news/goldman-ceo-says-reasonable-chance-of-u-s-recession-in-2023/articleshow/94953842.cms goldman sachs: Goldman CEO says reasonable chance of U.S. recession in 2023