Goldman Sachs CEO David Solomon said the US economy has a better chance at a softer landing. He expects sluggish economic growth and inflation to remain sticky but sees China's reopening as a growth catalyst that could add inflationary pressure.
Solomon reported that the CEO community has shifted to be more dovish in navigating the economy and that the chance of a softer landing is better now than six to nine months ago. A key inflation indicator has marked its seventh consecutive month of cooling, but the consumer price index for January was higher than expected.
Goldman Sachs Moves Into Cost-Cutting Mode for 2023
Goldman Sachs is coming off 3,200 job cuts in January, or about 6.5% of its workforce. The company has moved into a cost-cutting mode for 2023, and Solomon told partners at a meeting in Miami that he should have reduced the headcount sooner than he did.