Goldman Sachs CEO David Solomon acknowledges that inflation has been already firmly embedded in the global economy. From his standpoint, the annual rapid acceleration of consumer prices is a rock-solid argument.
“We see inflation deeply entrenched in the economy, and what’s unusual about this particular period is that both demand and supply are being affected by exogenous events, namely the pandemic and the war on Ukraine,” David Solomon commented on the fact that inflation had settled at multi-decade highs. As central banks around the world continue to tighten financial conditions and raise interest rates to combat inflation, already volatile financial markets will remain on a seesaw, thus taking a heavy toll on the global economy, Goldman Sachs’ chief noted. His grave concern is that aggressive monetary tightening is putting a strain on “corporate confidence and also consumer activity in the economy.” “Our economists meanwhile say there are signs that inflation will move lower in the second half of the year,” the leader of Wall Street’s top financial advisor unveiled the prediction. He also shared the information that clients from large companies complained about lingering logistic problems.
