Goldman Sachs CEO David Solomon throws cold water on Fed Reserve’s ‘soft landing’ inflation expectations
NY Post
Goldman Sachs CEO David Solomon threw cold water at expectations that the Federal Reserve will be able to execute a “soft landing” in its battle to tamp down inflation.
Solomon told a bankers’ conference in Miami on Tuesday that while “the world is set up for a soft landing,” there was a “higher level of uncertainty” because inflation continues to remain stubbornly above the Fed’s 2% target rate.
“The market is way weighted to a very soft landing. And when you look at the pattern of facts the last three or four years, it’s hard for me to see it’s going to be that simple,” Solomon said.
His comments were reported by Financial Times.
Solomon scoffed at the notion that the Fed would loosen monetary policy as quickly and intensively as has been predicted by some.
“When I was on TV in Davos a month ago, the consensus was for seven interest rate cuts and I said, ‘Gee, I just don’t understand this,’” Solomon said.
