Lloyd Blankfein, former CEO of Goldman Sachs, said on Sunday that he believed the economy was at risk of falling into recession as the Federal Reserve continued to raise interest rates to cope with rising inflation.

He said that the economic recession is a very, very high risk factor.

He said, "there is a road, which is a narrow road." He retired from Goldman Sachs a few years ago and now serves as senior chairman.

"But I think the Fed has very powerful tools. It is difficult to fine tune them, and it is difficult to see their effects quickly enough to change it," he said,

But I think they reacted well. This is definitely a risk. "

Last week, Federal Reserve Chairman Powell admitted that raising interest rates would bring some pain, but added that the worse result would be continued soaring prices.

In March this year, the Federal Reserve approved a 25 basis point increase in interest rates. But some analysts said they were worried that policymakers had fallen too far behind to contain price rises without taking drastic interest rate hikes that could lead to a recession.

He said that he agreed with Powell's assessment and said that some inflationary effects on the economy would be difficult to eliminate.

He served as CEO of Goldman Sachs from 2006 to 2018. During his tenure, he experienced the turbulent financial crisis that led the U.S. government to implement the bank rescue plan.