Goldman Sachs CEO Warns US Debt Reckoning If Growth Slows

Goldman Sachs CEO David Solomon warned of a looming "reckoning" for the US economy if government debt continues to rise without a corresponding increase in economic growth. He highlighted that US government debt has surged from $7 trillion to nearly $40 trillion since the 2008 financial crisis, accelerated further by the pandemic, and expressed concern over the long-term sustainability of this debt trajectory. Solomon emphasized that while the US economy is currently strong with a low chance of recession in the near term, failure to boost growth could exacerbate debt-related risks. Despite worries about the US dollar weakening relative to other currencies, he reassured that its status as the global reserve currency remains intact, noting significant global capital inflows into the US. Solomon called for a growth-focused path forward rather than alarmist reactions, signaling that addressing the debt issue requires boosting economic expansion. Goldman Sachs recently surpassed Wall Street profit expectations, benefiting from increased dealmaking activity amid these economic concerns.