Tags: goldman | blankfein | bad | outcome | economy

Goldman's Blankfein Sees Higher Odds of 'Bad Outcome' for Economy

By    |   Thursday, 15 February 2018 09:39 AM EST

Goldman Sachs CEO Lloyd Blankfein fears that all the planned government spending will eventually overheat the economy.

That said, he hinted to CNN that today’s economy is in far better shape under President Donald Trump than it would have been if Hillary Clinton had won.

“I bet you the economy is higher today than it otherwise would be,” Blankfein said in an interview with CNN.

“I haven’t felt this good since 2006,” Blankfein, 63, added.

"The odds of a bad outcome have gone up," he told CNN's Christine Romans in an interview airing Wednesday.

 “At this particular time, I would say, don’t throw all in.”

Blankfein said the risk is that all that stimulus could be "too much of a good thing" for the economy and financial markets.

"If the economy starts to overheat, and the Fed feels that it's behind" on inflation, it will need to act, Blankfein said.

Concerns about runaway inflation forced the Fed to scramble in 1994 by dramatically raising rates more than Wall Street anticipated.

"I remember 1994," Blankfein said. "That's possible, too. That would be quite jarring to the economy."

Still, he urged individual investors to tread carefully.

"I wouldn't throw all in," Blankfein said. "With the Fed raising rates, with the withdrawal of QE, with the budget deficit widening out, I wouldn't say this is the time I would max out on my risk."

Many other economic experts are more optimistic.

Economic guru Larry Kudlow contends that America now the “best country” for business in wake of the sweeping tax cuts engineered by President Donald Trump.

He praised the United States’ economy following the tax cuts and proclaimed the country now the “best” for business.

“We are on the front end of an investment boom that’s largely tied to the tax cuts,” Kudlow told New York AM 970 radio’s John Catsimatidis on “The Cats Roundtable.

“[It] will be stronger than anything we’ve seen in probably 25 years,” the former Ronald Reagan adviser told Catsimatidis.

“America is once again becoming the best investment environment in the world — the best country in which to do business. And that’s a powerful positive,” said Kudlow, a Newsmax Finance Insider and CNBC senior contributor.

For his part, Trump has taken to Twitter to defend his accomplishments. He often has said that the mainstream news media only reports "fake news" and twists the facts.

"So many positive things going on for the U.S.A. and the Fake News Media just doesn’t want to go there. Same negative stories over and over again! No wonder the People no longer trust the media, whose approval ratings are correctly at their lowest levels in history!" Trump recently tweeted. 

On the same day, Trump also used data to tout the economic benefits of his tax cut.

"4.2 million hard working Americans have already received a large Bonus and/or Pay Increase because of our recently Passed Tax Cut & Jobs Bill....and it will only get better! We are far ahead of schedule," he tweeted.

(Newsmax wire services contributed to this report).

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Goldman Sachs CEO Lloyd Blankfein fears that all the planned government spending will eventually overheat the economy.
goldman, blankfein, bad, outcome, economy
Thursday, 15 February 2018 09:39 AM
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