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Goldman Sachs CEO David Solomon said markets need weeks to digest geopolitical fallout, but called U.S. macro tailwinds compelling. He warned inflation could run above consensus and cautioned that weak private credit lending standards would be exposed in a slowdown.
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00:00It's Benzinga, bringing Wall Street to Main Street
00:02Goldman Sachs CEO David Solomon said Wednesday it could take a couple of weeks for investors
00:07to digest the short and medium-term implications, according to Reuters.
00:11Speaking at a business summit in Sydney, Solomon said markets often react in a muted
00:16way to geopolitical events unless they directly affect economic growth. He said that, setting
00:21aside the Middle East conflict, strong macroeconomic tailwinds make the U.S. growth outlook compelling.
00:26He added there is a reasonable probability the economy runs hot this year, which could
00:31push inflation slightly above consensus expectations. He said U.S. private credit portfolios have
00:37generally performed well due to economic resilience, but warned that in a slowdown or recession,
00:42weakened lending standards from competition to deploy capital would become more visible.
00:47For all things money, visit Benzinga.com.
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