Goldman Sachs CEO David Solomon made a daring prediction about the way forward for the Fed’s rates of interest. Talking at an occasion held at Boston School, Solomon acknowledged that he doesn’t presently anticipate the FED to make any reductions in rates of interest this yr.
The CEO’s prediction comes amid an economic system that has proven exceptional resilience, thanks largely to authorities spending. “I nonetheless do not see compelling knowledge to say we are going to decrease rates of interest right here,” Solomon mentioned, including that he presently foresees “zero” reductions.
Solomon additionally emphasised the function of investments in synthetic intelligence infrastructure in growing the economic system’s resilience to the FED’s financial tightening. That resilience may very well be a key issue within the determination to not lower charges, in keeping with Solomon.
Nevertheless, Solomon additionally warned of the chance of a big financial slowdown, which he described as “actual and palpable”. Noting that this threat is bigger now than six months in the past, Solomon additionally cited geopolitical fragility as an necessary issue contributing to this. “That is one thing folks should dwell with for a very long time,” he warned.
*This isn’t funding recommendation.
