Exchanges Goldman Sachs CEO David Solomon on the economy, markets and the firm’s performance
Feb 24, 2023
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CEOs Preparing For A Higher Inflation Regime
- CEOs' top concern is persistent inflation and its impact on investment and asset appreciation.
- Solomon notes many CEOs are preparing for a 3–4% inflation regime and that announced M&A volumes started the year at a 20-year low.
Small Businesses Rebuilt But Still Squeezed By Inflation
- Solomon describes small businesses' pandemic disruption and ongoing recovery challenges.
- He highlights narrow flexibility, wage pressure, and some ability to pass prices to customers as defining their resilience.
Tight Labor Market Means Longer Fed Tightening
- A tight U.S. labor market makes cooling inflation difficult and likely requires more aggressive Fed action.
- Solomon uses a baseball metaphor: we're mid-game in the tightening process, not near the end.