Goldman Sachs CEO: The U.S. economy is trending towards weakness, and tariff chaos is dragging down growth
Goldman Sachs CEO David Solomon warned that the U.S. economy is trending towards weakness, pointing out that Trump's trade war has impacted the economic growth outlook. He mentioned that recent employment data shows signs of weakness, and although wholesale inflation has decreased, prices remain high. JPMorgan Chase CEO Jamie Dimon also stated that the economy is gradually weakening, and non-farm payrolls will be revised down by 911,000. Solomon emphasized the importance of central bank independence and believes that the Federal Reserve does not need to cut interest rates quickly
According to the Zhitong Finance APP, Goldman Sachs CEO David Solomon, along with other bank executives, has warned about the slowdown of the U.S. economy, stating that U.S. President Donald Trump's trade war is impacting economic growth prospects.
In an interview on Wednesday, Solomon stated, "There is no doubt that recent employment data has shown signs of economic weakness, and this trend needs to be closely monitored."
Despite the unexpected decline in wholesale inflation in August, Solomon pointed out that he still observes signals of persistently high prices.
"Trade policy remains in a dynamic process of negotiation and implementation, and there is uncertainty about its ultimate direction," he emphasized. "In my view, this is undoubtedly having a negative impact on economic growth."
JPMorgan Chase CEO Jamie Dimon also stated on Tuesday, "The current economy is gradually weakening," and the revised employment data corroborates the bank's previous assessment.
According to preliminary benchmark revision data released by the U.S. government, non-farm payrolls are expected to be revised down by 910,000 (a decrease of 0.6%), marking the largest downward revision in history. The revised data shows that the monthly average of new jobs is about half of the previously reported figures.
Taking advantage of the revised employment data, Trump once again pressured the Federal Reserve to cut interest rates quickly. He criticized the Fed leadership on social media on Tuesday, stating, "Incompetence is a more pressing issue than maintaining so-called theoretical independence."
In response, Solomon stated, "We should recognize that the independence of central banks has brought tremendous benefits to everyone, and this is crucial."
Earlier this week, Solomon hinted that the Federal Reserve does not need to cut rates quickly, a view that contrasts with the Trump administration's pressure on the Fed. He stated at the Barclays Financial Services Conference, "From the perspective of market risk appetite, the current policy rate does not seem to be at overly restrictive levels." He also noted that current market investor sentiment is in an extremely optimistic range
