The risk of the U.S. entering a recession is "very, very high," and U.S. consumers and businesses should plan accordingly, Goldman Sachs Group Senior Chairman Lloyd Blankfein says.

Blankfein gave the warning during CBS News' "Face the Nation" Sunday. "If I were running a big company, I would be very prepared for it," Blankfein said. "If I was a consumer, I'd be prepared for it. But it's not baked in the cake."

If the Federal Reserve uses its "very powerful tools" precisely the right way to raise interest rates, it has a "narrow path" to avoid a recession, Blankfein said.

However, in a client note released Sunday, Goldman lowered its 2022 U.S. growth outlook to 2.4% and 2023 outlook to 1.6%, from 2.6% and 2.2% previously. The bank also cut its S&P 500 target, again, to 4,300.

Blankfein said the Fed has no choice but to raise rates to slow inflation and consumer spending, which will "involve some pain," particularly for lower-income individuals. He added that the Ukraine war and supply-chain disruption will eventually subside.