Goldman CEO Solomon Says Rates Aren’t Too Restrictive in Contrast With Trump

Core Viewpoint - Goldman Sachs CEO David Solomon believes there is no immediate need for the Federal Reserve to cut interest rates rapidly, contrasting with the Trump administration's calls for looser monetary policy [1][6]. Group 1: Interest Rate Policy - Solomon stated that the current policy rate does not seem extraordinarily restrictive given the current risk appetite in the market, indicating a high level of investor enthusiasm [2]. - Federal Reserve policymakers are expected to lower rates by a quarter point in their upcoming meeting, with further reductions anticipated through the end of the year [4]. - Treasury Secretary Scott Bessent suggested that the Fed should lower its benchmark rate by at least 1.5 percentage points, while Cleveland Fed President Beth Hammack does not see a case for rate cuts this month due to inflation remaining above the 2% target [5]. Group 2: Market Sentiment and Trade Policy - Solomon noted that while the market environment appears mostly constructive, trade policy has been a significant headwind to growth, contributing to uncertainty that has slowed investment [7]. - There are concerns that if the Fed proceeds with the anticipated rate cut, it could lead to a "Sell the News" event as investors may pull back [4].