Goldman Sachs CEO David Solomon advises clients to pay more attention to their finances, as the Federal Reserve’s move to combat inflation can have a recession and other negative consequences.
“Rising interest rates and the Fed’s bond-buying program reversal will affect many things that are difficult to predict for business,” Solomon told CNBC. Andrew Ross Sorkin on Wednesday.
“At some point, we have to consider the fact that there is a good chance that a recession will occur, growth will be very slow, and growth will be sluggish,” Solomon said. “If you run an important company, you now need to look through the lens with a little more care than when you were sitting here a year ago.”
A combination of rising raw material prices, ongoing supply chain problems and the Fed’s monetary tightening policies Hurt my self-confidence Goldman economists are holding odds to around 30% in the next 12-24 months, while the majority of executive respondents anticipate a recession, according to a business survey released Wednesday. ..
The Federal Reserve has raised benchmark rates twice so far this year, Shrink the balance sheet Solomon said the month’s tens of billions of dollars “a journey in the process of tightening economic conditions.”
This change, a sharp reversal from the easy-money policy of the last decade, has plagued investors and was surprised when some companies were trying to raise money, he said.
“Many companies thought it would be easier to access capital, but the road to raising the necessary capital is probably difficult,” Solomon said.
In an extensive interview, Solomon also discussed topics such as cryptocurrencies and fintech. He was the “true bull” on the digital destruction of finance and talked about the investment bank’s new vacation policy.Banks offer partners and managing directors Greater flexibility to take time “Historically, our people haven’t taken a qualified vacation,” Solomon said, leaving work.
Goldman CEO David Solomon said he would be cautious following the Fed’s tightening.
Source link Goldman CEO David Solomon said he would be cautious following the Fed’s tightening.