Former Goldman Sachs CEO Lloyd Blankfein said on Sunday he believes the U.S. economy is at risk of possibly going into a recession, as the U.S. Federal Reserve continues to raise interest rates to tackle rising inflation.

Speaking on "Face the Nation" on CBS, Blankfein said a recession is "a very, very high risk factor."

"But I think the Fed has very powerful tools. It's hard to finely tune them, and it's hard to see the effects of them quickly enough to alter it, but I think they're responding well. It's definitely a risk."

A hyper-hawkish Federal Reserve has driven a sharp tightening in financial conditions, which led Goldman Sachs to cut its 2022 GDP growth forecast to 2.4 percent, from 2.6 percent. Growth in 2023 is now seen at 1.6 percent on an annual basis, down from 2.2 percent.

(With input from Reuters)