{"id":21880,"date":"2023-06-13T04:12:54","date_gmt":"2023-06-13T08:12:54","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/goldman-sachs-ceo-david-solomon-surprised-at-u-s-economys-resilience-says-its-a-period-to-be-a-little-bit-cautious\/"},"modified":"2023-06-13T04:12:56","modified_gmt":"2023-06-13T08:12:56","slug":"goldman-sachs-ceo-david-solomon-surprised-at-u-s-economys-resilience-says-its-a-period-to-be-a-little-bit-cautious","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=21880","title":{"rendered":"Goldman Sachs CEO David Solomon \u2018surprised\u2019 at U.S. economy\u2019s resilience, says \u2018it\u2019s a period to be a little bit cautious\u2019"},"content":{"rendered":"
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\n \u201c<\/span> \u201cI certainly predicted given the economic tightening we\u2019ve seen, you know, a bumpier ride than we\u2019ve had so far.\u201d \u201d<\/span>\n <\/p>\n


\n \u2014 David Solomon, chief executive officer at Goldman Sachs Group <\/span>
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David Solomon, chief executive officer at Goldman Sachs Group,
\n GS,
\n +1.03%<\/bg-quote>
\n has been \u201csurprised\u201d at the resilience of the U.S. economy over the course of the last year as the Federal Reserve aggressively tightened its monetary policy, according to his interview Monday with CNBC\u2019s \u201cSquawk on the Street\u201d program.<\/p>\n

\u201cThe U.S. economy has been incredibly resilient,\u201d Solomon said during the interview<\/a>. \u201cI certainly predicted given the economic tightening we\u2019ve seen, you know, a bumpier ride than we\u2019ve had so far.\u201d<\/p>\n

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While Goldman\u2019s economists have again reduced the chances they see for a recession, \u201cit\u2019s a period to be a little bit cautious,\u201d according to Solomon. While the U.S. may \u201cmuddle through here with a much softer landing than we would have expected,\u201d people running businesses might still consider the economy could face \u201cslow, sluggish growth\u201d with inflation that\u2019s \u201ca little bit more sticky,\u201d he said.<\/p>\n

In Solomon\u2019s view, even if the U.S. doesn\u2019t land in a recession, it would \u201cfeel like\u201d one in an environment with zero to 1% growth and inflation at 3.5% to 4%. He described himself as \u201cnot a good predictor of where interest rates will go\u201d but said \u201cstubborn inflation\u201d means there\u2019s a chance rates could move higher, which probably would make the economic environment \u201ca little bit more challenging.\u201d<\/p>\n

Meanwhile, the relatively low unemployment rate may make it \u201chard to have a recession,\u201d according to Solomon. In May, the U.S. unemployment rate stood at 3.7%, according to the Bureau of Labor Statistics.<\/p>\n

\u201cThere have been some speed bumps,\u201d said Solomon, but \u201cso far, the economy has been more resilient than we expected.\u201d <\/p>\n

The Fed is scheduled to announce its policy decision on interest rates on Wednesday, the day after the inflation report for May is released.<\/p>\n

See:<\/strong> Goldman Sachs analysts see more \u2018inflation relief\u2019 coming this year, at least \u2018beyond the next couple of prints\u2019<\/p>\n

Meanwhile, the U.S. stock market was trading higher Monday afternoon, with gains led by the technology-heavy Nasdaq Composite. The Nasdaq
\n COMP,
\n +1.53%<\/bg-quote>
\n was up a sharp 1.3%, while the Dow Jones Industrial Average
\n DJIA,
\n +0.56%<\/bg-quote>
\n rose 0.5% and the S&P 500
\n SPX,
\n +0.93%<\/bg-quote>
\n gained 0.8%, according to FactSet data, at last check.<\/p>\n<\/p><\/div>\n<\/div>\n