Goldman Sachs CEO David Solomon worried about – Business News
Goldman Sachs CEO David Solomon on Thursday expressed issues that mounting US authorities debt will pose more of a downside if the financial system doesn’t grow quicker.
“If we continue on the current course, and we don’t take the growth level up… there will be a reckoning,” Solomon informed the Economic Club of Washington.
The US national debt just lately hit $38 trillion.
“I do think over time, this is an issue,” Goldman Sachs CEO David Solomon mentioned Thursday. REUTERS
“We should be concerned about this, not sounding an alarm bell,” he mentioned. “But I do think over time, this is an issue.”
“The pandemic played an accelerating role, and it doesn’t seem like we have the ability to pull it back. And so we took in the debt in the last 15 plus years, and since the financial crisis, from $7 trillion to $38 trillion.”
The US financial system has been in fairly fine condition, minimizing probabilities of a recession within the close to time period, Solomon mentioned.
Despite issues about the US greenback’s position weakening within the financial system, he doesn’t see its standing eroding as the worldwide reserve currency.
The US national debt just lately hit $38 trillion. The US financial system has been in fairly fine condition, minimizing probabilities of a recession within the close to time period, Solomon mentioned. AFP by way of Getty Images
“When you get around the world, and you look at all the capital flows around the world, global allocators, 50% of their capital is coming into the US,” he mentioned.
“They might be hedging the dollar a little bit differently now than they might have been for the last few years, but I think it’s more at the margin… it’s something to watch. But I’m not concerned that there’s some fundamental shift.”
This month, Goldman Sachs beat Wall Street expectations for third-quarter revenue as investment bankers capitalized on a dealmaking resurgence.
