- Goldman Sachs CEO David Solomon stated Tuesday that he sees a much better shot at a “softer landing.”
- But he also warned that explained he expects additional sluggish economic development, and that inflation remains sticky.
- China’s reopening will be a expansion catalyst but will insert inflationary pressure, he included.
David Solomon, the chief executive of Goldman Sachs, stated the US economy’s prospects appear greater now than they did final yr.
“The consensus has shifted to be a minor little bit more dovish in the CEO community that we can navigate via this with a softer economic landing,” he stated Tuesday at a Credit score Suisse conference, according to Bloomberg. “The possibility of a softer landing feels greater than it did six to 9 months in the past.”
The exec also pointed out that he expects extra sluggish financial expansion in 2023, inflation remains sticky, and that China’s reopening will be a expansion catalyst but include inflationary stress.
Independently on Tuesday, a critical inflation indicator marked the seventh consecutive thirty day period of cooling but arrived in increased than expected.
The Labor Section documented that the client cost index was up 6.4% in January, down from 6.5% in the prior month but earlier mentioned forecasts for 6.2%.
Meanwhile, Goldman Sachs is coming off 3,200 career cuts in January, or about 6.5% of its workforce. The Wall Street giant has moved into price tag-reducing mode for 2023, and earlier this 7 days Solomon informed associates at a assembly in Miami that he should have lowered headcount sooner than he did.
“As the setting was developing much more sophisticated in Q2 of previous yr, each individual bone in my entire body thought we should really be a lot far more aggressive in slowing using the services of and lessening headcount,” he mentioned, according to the Economical Times.
