Goldman’s Solomon: Fed Could Raise Beyond 4.5–4.75 Percent If No ‘Real Changes in Behaviour’

David Solomon, Chairman and CEO of Goldman Sachs, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, Calif., on May 2, 2022. (Mike Blake/Reuters)

RIYADH—Goldman Sachs CEO David Solomon said on Tuesday the Federal Reserve said economic conditions will “tighten meaningfully from here” and the Federal Reserve could hike rates beyond 4.5–4.75 percent if it does not see real changes in behavior.

“So I too am in the camp that we likely—likely have a recession in the U.S., going to have I think, most likely, a recession—we might be in a recession in Europe,” he said, speaking at Saudi Arabia’s flagship investment conference FII.