To say that the past few years have been anything but terrible for the U.S. economy would be a bold-faced lie. “Inflation” has been the keyword thrown around most during these times, and whether people want to place the blame on politicians or the corporations raising the prices, one thing is for certain: it has been a terrible time for the working class.
Higher costs of living and consistently low wages have put a cloud of doubt and pessimism over the nation. With China’s rising power looming on the horizon and Russia’s sanctioned institutions continuing to be a hole in the U.S. job market, it can seem like there’s no end in sight. However, according to Goldman Sachs CEO, David Solomon, things are beginning to look up, and that 2023 might be the beginning to the United States’ venture back to normalcy.
An Optimistic Future
Goldman Sachs is the second largest investment bank in the world, its assets valued at upwards of a trillion USD. Solomon has been the figurehead of the company for more than four years, keeping his fingers on the pulse of the global economy, so when he gives his thoughts on the livelihoods of the working class, people tend to listen. He made appearance to speak with shareholders on February 14th after not attending any such conference in nearly three years. It’s been widely believed that the U.S. was digging itself into a deep recession after another year of aggressive inflation. Solomon, however, was determined to soothe investors’ fears on the matter in a conference held by leading financial services company Credit Suisse. “Consensus has shifted to be a little bit more dovish in the CEO community,” Solomon had stated during the Miami “Investors Day” conference, “that we can navigate through this in the United States with a softer economic landing.”
“Clearly the market has a sense that we’re putting inflation in the rearview mirror,” said Solomon, and indeed inflation has begun to plateau, with more jobs being created every day. 2022 was undoubtably a rough year, but improvements in capital markets activity are starting to show. Even if things do begin to spiral downwards, the CEO is banking on the promise that a shallow recession will be the worst 2023 has to offer. He praised the American people for their resilience while letting it be known that financial leaders everywhere are vying for a return to normalcy. The country depends on these industry leaders on nudging the economy back to where it once was before the pandemic, but there are some that wonder if it’s even possible so soon. Solomon, to his credit, does address the worry that has spread through his peers.
Uncertainty and Doubt
It needs to be stated that despite Solomon’s optimistic attitude towards America’s immediate future, he admits that uncertainty is still brewing amongst CEOs. His words came a mere month after he and his company had decided to axe over 3,000 employees from their company. Goldman Sachs is apparently aiming for a “much tighter hiring plan”, hence the widespread layoffs. He describes the road ahead as “twisty and turn-y,” but otherwise believes that the U.S. has a better chance of a “softer landing” than it did six to nine months prior. This is after the Consumer Price Index rose 0.5%. This brought the CPI to a staggering 6.4% since January of 2022. While it may not seem like too large an increase to some, when it comes to frequent costs for gas, food, and rent, things tend to add up. There is also the rising feud between China and the U.S. that worries business experts, as well as the ongoing Russia/Ukraine war throwing a wrench into the works; the U.S. is still wounded by its continued sanctioning of Russian firms and giving financial aid to Ukraine.
In the end, only time can tell how the U.S. will make it out in the end. Thankfully, this will not be the last time Solomon speaks on the issue. His latest appearance was on February 28th, where he continued to share a message of hope with his shareholders and fending of detractors. While he’s openly admitted that Goldman Sachs was unlikely to make any major deals in the near future, he still represents one of the largest financial advising institutions in the world. We will continue to hear from him in 2023 about a developing nation that looks to him for answers during this difficult time.
Comments are closed, but trackbacks and pingbacks are open.