Goldman Sachs CEO David Solomon (pictured) stated on Tuesday that the United States Federal Reserve could raise interest rates beyond 4.5-4.75% if there are no ‘»real changes in behavior.»
«If they don’t see real changes – labor is still very, very tight – they’re obviously just playing with the demand side by tightening. But if they don’t see real changes in behavior, my guess is they’ll go further,» Solomen said at Saudi Arabia’s leading investment conference, FII.
He further stressed that it is hard for the economy to solve inflation without an economic slowdown. «There’s a lot of stuff on the horizon which is bad and could – not necessarily – but could put the US in recession,» he added. However, he also mentioned that «that’s not the most important thing,» but «the geopolitics in the world today.»