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Goldman Sachs CEO David Solomon Dismisses Fears of Economic Recession

13 Aug 2019 Wadsam Afghanistan Business News

Goldman Sachs CEO

David Solomon stated that he does not see a looming economic crisis but things

could change easily.

Solomon stated that the current economic environment is not

alike the pre-crisis days of August 2007 however things could change because of

the trade war.

“The underlying economy is still doing okay. The chance

of a recession in the near term is still relatively low,” Solomon stated.

“But we have to watch what’s going on with tariffs.”

However, others have expressed concern about the Unite

States economy. JPMorgan Chase economist Joseph Lupton stated that the

probability of a US recession has climbed to 40%.

Goldman Sachs CEO does not see that, and stated that “There

is a tendency to look at things through the rearview mirror.”

The trade wars have made investors around the world very

nervous and The Trump administration has pledged a 10% tariff on $300 billion

of Chinese goods by September 1st. These tensions might hurt the

economy as it will make households and businesses nervous to spend money on the

economy.

Solomon believes the tariffs have not affected the US

economy as much but it has to be watched as it can drastically slow down the

economy of America.

Solomon also supports the Trump administration to rebalance

the trade relationship with China. Solomon stated that “I’m not a fan of

tariffs, but we need to find a way to push.”

Solomon touched on the controversy surrounding the Federal

Reserve. He stated that it is important to have an independent Fed, even though

Trump wants the Fed to slash interest rates by a full percentage point, which

is typically done during emergencies.

Solomon stated that cutting of interest rates should not have

anything to do with politics as it is unhealthy.

The post Goldman Sachs CEO David Solomon Dismisses Fears of Economic Recession appeared first on Wadsam.

Original Link: https://wadsam.com/international-business-news/goldman-sachs-ceo-david-solomon-dismisses-fears-of-economic-recession/

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