Goldman Sachs' chief operating officer has warned of a"mini stagflation" scenario where sticky inflation eats away at US economic growth.
"If you want to paint a more cautious picture, you would say we might have a mini stagflationary scenario.
The US has been battling high inflation for over a year, forcing the Federal Reserve to take aggressive steps in a bid to cool price pressures down. In April, consumer prices rose- the pace has decelerated significantly from the mid-2022 highs but still remains well above the central bank's goal. Waldron added"the persistence of inflation in the system" on the supply side is what's being felt by the Wall Street bank's corporate clients.
"If you're running a company, you've got higher wage prices, higher supply prices, you've passed along that price pressure to your customers," he said, adding there's concern among companies about whether higher prices will impact margins.