The economy continues to look “fine overall,” there are no major financial imbalances and the Federal Reserve has a lot of room to cut interest rates and can do so quickly if needed, they said.
Goldman Sachs economists increased the probability of a US recession in the next year to 25% from 15%, but said there are several reasons not to fear a slump even after unemployment jumped.
“We continue to see recession risk as limited,” the Goldman economists led by Jan Hatzius said in a report to clients on Sunday.
