David Solomon, CEO of Goldman Sachs, stated that due to strong economic resilience driven by U.S. government spending, the Federal Reserve is unlikely to cut interest rates this year. Speaking at an event at Boston College, Solomon emphasized the lack of data supporting rate cuts and predicted zero rate reductions for 2024.
Solomon also highlighted the role of AI infrastructure investments in mitigating the impact of the Fed's tightening policy. However, he noted that rising prices are starting to pressure consumers, with recent earnings reports from McDonald's and AutoZone reflecting reduced consumer spending.
Goldman Sachs economists had previously anticipated two rate cuts this year, one in July and another in November. Nonetheless, the firm now faces significant internal debate on the matter, with a cautious outlook prevailing among client-facing staff.
Comments