Global economy will 'stop just short' of recession from coronavirus, Goldman economist says

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Global economy will 'stop just short' of recession from coronavirus, Goldman economist says
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Goldman's Jan Hatzius said on CNBC's 'Closing Bell' that the world economy would likely shrink for 'a quarter or so' but rebound before officially becoming a recession.

"Clearly, there's a lot of uncertainty, and a lot of the uncertainty is in areas that normally economic forecasters don't have to have a judgement on, namely the medical issues," Hatzius said.

That uncertainty has led to pressure on the Federal Reserve and other central banks to find ways to support the global economy. President Donald TrumpGoldman Sachs expects most major central banks to cut rates, and Hatzius said a coordinated effort might be the smartest approach for the banks to take.

"It seems almost like a freebie to get a little bit of additional signal from doing it together," Hatzius said.

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