He also cautioned that the risks of the Fed being too hawkish could be severe.
"The consequences of slipping into deflation are very very extreme because what tools do we have to reverse that?" Blankfein said. "Better to play it on the safe side and keep rates lower."
The bank reported a huge third quarter on Thursday morning, easily beating analyst estimates on a revenue bump from bond trading. Goldman also cited an improving U.S. economic environment for its own recent successes.
Read More Goldman's big Q3 beat
Turning to the recent market volatility, which some have blamed on the threat of Ebola in the United States, Blankfein cautioned that investors not succumb to fear.
"I don't think we should be hyperbolic and crazy about this," the CEO said, adding that "I wouldn't overdo the Ebola virus and I wouldn't try to create another virus of fear that has its own life to it."