Goldman Sachs Sees Ghosts of Stagflation, Warns of Tight Times Ahead

Goldman Sachs Group, Inc. GS sees a mini stagflation scenario ahead, ailed by sluggish growth and higher inflation.

The banking behemoth predicts a stricter environment for capital markets and financing as the risk appetite for its clients is lower, Reuters reported, citing a statement from the bank's president John Waldron. 

The report added that Goldman Sachs is not very certain about any job cuts at the group. The New York-based bank reportedly geared up for another round of headcount reduction, cutting fewer than 250 jobs in the following weeks. 

The president commented, "We are running the firm tighter, we are being more cautious."

"We're planning for that scenario to be more likely, doesn't mean it will happen," Waldron noted.

Also Read: Amid Slower Deal Making, Goldman Sachs To Layoff Some 500 Jobs

Price Action: GS shares are trading lower by 0.59% to $333.77 on the last check Thursday.

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