Goldman Sachs CEO David Solomon says the economy feels like it has a better chance at a 'softer landing'

  • Goldman Sachs CEO David Solomon said Tuesday that he sees a better shot at a “softer landing.” 
  • But he also warned that said he expects more sluggish economic growth, and that inflation remains sticky. 
  • China’s reopening will be a growth catalyst but will add inflationary pressure, he added.

David Solomon, the chief executive of Goldman Sachs, said the US economy’s prospects look better now than they did last year. 

“The consensus has shifted to be a little bit more dovish in the CEO community that we can navigate through this with a softer economic landing,” he explained Tuesday at a Credit Suisse conference, according to Bloomberg. “The chance of a softer landing feels better than it did six to nine months ago.”

The exec also noted that he expects more sluggish economic growth in 2023, inflation remains sticky, and that China’s reopening will be a growth catalyst but add inflationary pressure.

Separately on Tuesday, a key inflation indicator marked the seventh consecutive month of cooling but came in higher than expected.

The Labor Department reported that the consumer price index was up 6.4% in January, down from 6.5% in the prior month but above forecasts for 6.2%.

Meanwhile, Goldman Sachs is coming off 3,200 job cuts in January, or about 6.5% of its workforce. The Wall Street giant has moved into cost-cutting mode for 2023, and earlier this week Solomon told partners at a meeting in Miami that he should have reduced headcount sooner than he did.

“As the environment was growing more complicated in Q2 of last year, every bone in my body believed we should be much more aggressive in slowing hiring and reducing headcount,” he said, according to the Financial Times.