Goldman Sachs doubles the chances of the US entering a recession in the next year

Economists at Goldman Sachs have doubled the probability of the US economy tipping into recession in the next year, as they slash their growth outlook due to concerns over inflation and interest rates.

‘We now see recession risk as higher and more front-loaded,’ Goldman Sachs Chief Economist Jan Hatzius wrote in a note on Monday, raising the chances of a recession in the next 12 months to 30 percent, up from 15 percent.

‘We are increasingly concerned that the Fed will feel compelled to respond forcefully to high headline inflation and consumer inflation expectations if energy prices rise further, even if activity slows sharply,’ the note added. 

The grim forecast comes about a week after the Federal Reserve rolled out its biggest rate hike since 1994 to stem an ongoing surge in…