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Goldman Sachs executive warns inflation top risk to global economy

Published 10/13/2021, 10:08 AM
Updated 10/13/2021, 10:48 AM
© Reuters. FILE PHOTO: John Waldron, co-head of the Investment Banking Division, Goldman Sachs, speaks at the Milken Institute 21st Global Conference in Beverly Hills, California, U.S., May 1, 2018. REUTERS/Mike Blake
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NEW YORK (Reuters) -Goldman Sachs' Chief Operating Officer John Waldron said on Wednesday he believes inflation is the No.1 risk that could derail the global economy and stock markets.

"Inflation is the single biggest risk out there right now both in terms of the short-term risk it can have on the recovery and the longer-term risk it can have in respect of emerging markets," he said in a conversation held virtually by the Institute of International Finance.

Speaking about how the pandemic has impacted Goldman's business and strategy, Waldron said the bank was adjusting its real estate footprint to be less focused on New York, London and Hong Kong.

© Reuters. FILE PHOTO: John Waldron, co-head of the Investment Banking Division, Goldman Sachs, speaks at the Milken Institute 21st Global Conference in Beverly Hills, California, U.S., May 1, 2018. REUTERS/Mike Blake

"If you look at our footprint today, it's much more distributed and, in five to 10 years, it will be even more distributed," he said.

"We'll have many more people in other cities in the United States and other cities across Europe and Asia and will be less concentrated," he said.

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