Goldman Sachs CEO David Solomon said Monday he isn’t concerned about a potential recession but worries about the U.S.-China trade war’s effect on the economy.
“I don’t think we’re at a moment where there is an impending economic crisis. But look, things could change,” Mr. Solomon told CNN Business, adding that while the market is “slowing a bit,” the “underlying economy is still doing OK.”
Mr. Solomon said comparisons to the 2007-2009 recession are a product of viewing “things through the rearview mirror.”
“The chance of a recession in the near term is still relatively low,” he said. “But we have to watch what’s going on with tariffs.”
President Trump announced Thursday his administration will impose a 10 percent tariff on $300 billion worth of Chinese goods amid trade talks and has threatened to raise it to 25 percent if no deal is made.
“At the moment, I think the real impact of tariffs has been small, but you’ll have to watch that carefully,” he said. “Those are the kind of things that can change confidence. And confidence can slow down economic activity.”
After Mr. Solomon’s comments, Bank of America announced it was raising the risk of a recession happening in the next 12 months from 20% to a “1-in-3 chance” because of the trade war.
• Bailey Vogt can be reached at bvogt@washingtontimes.com.
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