Goldman Sachs CEO Flags U.S. Growth Linked to Trade Clarity, M&A Expansion

Goldman Sachs CEO David Solomon has highlighted growing signs of strain in the U.S. economy, particularly citing softening job data and ongoing trade policy uncertainty linked to President Donald Trump's escalating trade war. Despite concerns over persistently high prices, Solomon diverges from the Trump administration's push for rapid Federal Reserve rate cuts, stating that current policy rates do not seem overly restrictive given market risk appetite. He emphasized the importance of central bank independence amid these pressures. Solomon also noted that greater trade certainty would benefit U.S. economic growth and pointed to a significant uptick in strategic mergers and acquisitions activity, reflecting increased business confidence despite macroeconomic uncertainties. Additionally, Goldman Sachs' asset and wealth management divisions are expected to grow, with the firm open to selective acquisitions. These insights reflect broader Wall Street concerns about slowing economic momentum and policy uncertainty impacting growth prospects.