Goldman Sachs Sees Deeper Recession Ahead

New York, NY, Oct. 6, 2008--The U.S. recession will be "significantly deeper" than econommists at Goldman Sachs previously thought, the company predicted Friday in a research note.

The economy will probably show no growth at all between the middle of 2008 and the middle of 2009, with gross domestic product falling 2 percent this quarter and 1 percent next, they said.

Two other quarters will show 0 percent GDP growth. The unemployment rate will likely rise to 8 percent by the end of next year from 6.1 percent currently.

"We now also see at least another 100 basis points of monetary easing from the Federal Reserve, aggressive measures to stabilize the money markets, and a possible further easing of fiscal policy under a new administration," wrote Jan Hatzius and his team of economists.