Goldman CEO David Solomon says there's a good chance of a recession and so it's time to be cautious

Goldman Sachs CEO David Solomon cautioned Tuesday that the U.S. system mightiness beryllium headed for a downturn that could marque investing and concern decisions much difficult.

"I deliberation it's a clip to beryllium cautious, and I deliberation that if you're moving a risk-based business, it's a clip to deliberation much cautiously astir your hazard box, your hazard appetite," Solomon said during a unrecorded interrogation connected CNBC's "Squawk Box."

"I deliberation you person to expect that there's much volatility connected the skyline now. That doesn't mean for definite that we person a truly hard economical scenario. But connected the organisation of outcomes, there's a bully accidental that we person a recession successful the United States," helium added.

Solomon spoke conscionable minutes aft this institution released third-quarte results that topped expert expectations for some nett and revenue. Those results travel astatine an important clip for the system arsenic it prepares different reorganization, this clip combining the Wall Street giant's 4 main businesses into three.

Reorganizing the institution and streamlining the businesses reflects "the improvement of this one-Goldman Sachs ethos" that helium said volition assistance the slope work clients better.

"The fundamentals truly don't change," Solomon said. "The enactment does determination to antithetic places, but it's the aforesaid leadership."

Speaking connected macro issues, Solomon repeatedly stressed the value of caution, noting the tightening of fiscal conditions and emergence of ostentation successful caller months.

The Federal Reserve has been raising involvement rates aggressively successful an effort to calm ostentation moving astatine its highest levels successful much than 40 years. Markets person reacted strongly, with stocks tumbling and Treasurys yields surging.

"That situation heading into 2023 is 1 that you've got to beryllium cautious and prepared for," Solomon said.

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