Goldman Sachs CEO David Solomon expects inflation to remain elevated for a longer period of time and warned that economic conditions have become “tougher” for lower-income consumers.
“After years of easy monetary policy and fiscal stimulus, economic conditions tightened at the fastest rate in 40 years, and yet there was not a recession,” Mr. Solomon wrote in a March 15 annual letter to shareholders. “The U.S. economy has proven more resilient than expected, and markets are predicting rate cuts, though I think inflation may prove stickier than many anticipate. Either way, the cost of capital is now materially higher, and markets are adjusting.” Startups and multinational companies are showcasing different situations in the current economic scenario.
