"I think we're in a tough position for the next three, four, five months," said Blankfein on MSNBC's "Morning Joe," where he appeared with Buffett on Tuesday.
'We've been in a lot tougher position and the economy is not horrible, it's just not growing the way it should and there's just a lot of uncertainty," Blankfein added.
"People are looking at the election going forward whichever side you're on and saying 'I just don't know what I'm going to have, I don't know what my net is going to be after taxes, I don't know what regulations are going to be, I don't know what the result is, except that it's going to be very consequential, so I think I'll wait,'" Blankfein said.
Buffett, CEO of Berkshire Hathaway, agreed with Blankfein that the economy was in for a "tough" spell in the short term.
The "Oracle of Omaha," as Buffett is known, said the economy has recovered at a "slow rate" since the fall of 2009, but the housing market is a continuing drag.
"I mean, you have one big sector of the economy that has not yet come back. I see a few signs that it's coming back, but we just have too many houses around," he said.
However, Buffett rejected the idea that businesses have reservations about making investments.
"I don't buy it. At Berkshire Hathaway we're going to spend eight and a fraction billion on capital expenditures this year. That will be a record, a billion more than last year and last year was a record," Buffett said.
The two were in Chicago for the graduation of participants in the Goldman Sachs 10,000 Small Businesses initiative. Buffett and Blankfein were joined by a participant in the program, Danielle Hrzic of Gourmet Gorilla, Inc., a company that promotes healthy eating in schools.