Goldman Sachs CEO David Solomon expects the Federal Reserve to keep interest rates within a narrow range in 2025 unless inflation takes a significant turn. Speaking on the firm’s podcast, Solomon noted that while durable goods inflation has been soft, rising costs in services and food remain key challenges. He emphasized that these factors will impact the broader economy and limit major policy shifts.
The Fed maintained interest rates unchanged on Wednesday, with Chair Jerome Powell signaling no urgency for cuts until inflation and labor market data support such a move.
Looking ahead, Solomon anticipates a stronger environment for capital markets in 2025, with increased deal activity, particularly involving private equity firms. Goldman Sachs recently reported its highest quarterly profit in over three years, driven by strong investment banking and trading performance.
This article was written by Eamonn Sheridan at www.forexlive.com. Source