The head of one of the largest investment banks in the world - Goldman Sachs, David Solomon believes that the state of the US economy is fragile. “We already have a real cocktail of changes - some of them can be very constructive for growth, others can slow it down“, Solomon said, quoted by the newspaper Financial Times.
He believes that it is “important to balance everything“. Solomon is “extremely optimistic“ about further economic development, expressing confidence that the large-scale deregulation of the market, promised by the newly elected President Donald Trump, will catalyze business investment. “Stimulating factor“ the financier called Trump's promised tax cuts a "big blow." At the same time, Solomon warned of the potential consequences of the new administration's plans to tighten immigration, including deporting millions of people living in the United States illegally and imposing new tariffs on trading partners. "You have to get the results of the implementation" of these proposals, he said. "I'm very optimistic, but we are in a more precarious position," Solomon noted. The rules imposed by the Joe Biden administration have caused CEOs to slow down investment, he said. The new administration "has sent a clear signal that it wants to move away from that." He sees such a move as "very constructive for growth and investment."