Goldman Sachs Group CEO David Solomon said he currently does not expect the Fed to cut interest rates this year because the economy has shown a stronger economy thanks to government spending.assettocorsagamecrashedresilience.
David Solomon
"I still don't see convincing data that we will cut interest rates," he told an event at Boston College, adding that he currently predicts "zero" rate cuts. Investment in artificial intelligence infrastructure is also making the economy more resilient in the face of the Federal Reserve's monetary tightening.
However, Solomon said consumers are beginning to feel the pressure of rising prices. He pointed out that recent performance reports from companies such as McDonald's prove that consumers are beginning to curb spending.
"If you talk to CEOs of companies that really deal with the 'middle end' of the U.S. economy, they're starting to see changes in consumer behavior," he said."Inflation is not just nominal, it's cumulative, so everything is more expensive." You start to see consumers, ordinary Americans, feeling this way."
Solomon also said there was a greater risk of a "real" slowdown in the economy than it was six months ago. He mentioned geopolitical fragility and said people will have to endure it for a long time.