The U.S. economy is “structurally less recession-prone today,” Goldman Sachs economists said.
That calls comes just months after Wall Street feared that an inverted yield curve was signaling an imminent recession.
Goldman cites five factors that pose a reduced threat to the “Great Moderation” that began more than 30 years ago and was interrupted only by the financial crisis.
Just months after almost everyone on Wall Street worried that a recession was just around the corner, Goldman Sachs said a downturn is unlikely over the next several years.
In fact, the firm’s economists stopped just short of saying that the U.S. economy is recession-proof.
An analysis Goldman conducted of the current potential risks to growth show that they are mostly muted. The report found that the pillars of the “Great Moderation” that began in the 1980s — low levels of volatility marked by sustainable growth and muted inflation, interrupted only by the financial crisis more than a decade ago — are still standing.
Investors could be excused for getting a little nervous over such calls, as optimism also was heavy in late 2007, just as the economy was about to enter the worst of the financial crisis.
They are lying...….
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