Goldman Sachs's Gill: Recession Isn't Our Base Case

The video discusses the potential for a recession in the US, with expectations of continued monetary tightening. It highlights the importance of the magnitude of any recession and its impact on investment opportunities. The labor market is expected to soften, with central banks aiming to slow hiring without causing large-scale layoffs. Energy prices are moderating, but long-term inflation is driven by decarbonization and fossil fuel dependency. Supply chain improvements are helping to ease inflationary pressures, with hopes for a soft landing scenario.

Discuss the long-term inflation story related to the energy sector and decarbonization.

What improvements in inflation have been acknowledged by central bankers, according to the text?