Goldman Sachs Group Inc. Chief Economist Jan Hatzius spoke with Bloomberg TV on Friday. Posting this ICYMI.
- "If the economy does not slow and if we, in particular, don’t get a pretty substantial slowdown in employment growth, then you’d be looking at something that could go significantly higher, to the 4%-plus range”
- That's not the base case from GS economists though:
- “Our baseline is that by the middle of 2023 we’ll be at a little over 3% but there are obviously risks around that”
- “On the downside, if we get a much sharper tightening in financial conditions than they want. On the upside, if the economy stays stronger, or you fail to get additional tightening in financial conditions.”
Hatzius said that it will require “fancy footwork” from the Fed to achieve a soft landing, citing the strongest inflation in 40 years, and the strongest jobs market since the 1950s.
