David Solomon, CEO of Goldman Sachs, talking on CNBC’s Squawk Field outdoors the World Financial Discussion board in Davos, Switzerland on Jan. twenty second, 2025.
Gerry Miller | CNBC
Do not mess with DJ D-Sol — Goldman Sachs CEO David Solomon’s stage title when he is rocking the golf equipment in his different life as a DJ.
U.S. President Donald Trump criticized Goldman on Tuesday for predicting that tariffs would push up inflation, and mentioned Solomon “ought to exit and get himself a brand new Economist or, perhaps, he ought to only concentrate on being a DJ.”
In response, Goldman defended the outcomes of its research, based on a CNBC interview with the financial institution’s economist David Mericle.
“If the newest tariffs, just like the April tariff, comply with the identical sample that we have seen with these earliest February tariffs, then finally, by the autumn, we estimate that buyers would bear about two-thirds of the price,” Mericle mentioned.
Goldman, in reality, shouldn’t be the one Wall Avenue financial institution placing forth this view.
UBS senior economist Brian Rose wrote that “the downward development in core inflation has been damaged as tariffs begin to feed by means of into retail costs,” whereas Michael Feroli, chief U.S. economist at JPMorgan Chase, mentioned in a word that tariffs may “add 1-1.5% to inflation, a few of which has already occurred.”
In fact, a consensus view doesn’t imply predictions will come true. Recall how economists had been all however sure a U.S. recession would occur in 2023 — just for the economic system to develop 2.5% that yr.
In any case, if Goldman — and economists from different banks —is confirmed incorrect on tariff-driven inflation, and Trump, in a hypothetical state of affairs, manages to someway push Solomon out of his place, a minimum of DJ D-Sol will nonetheless be on the market spinning data.
— CNBC’s Jeff Cox contributed to this report
What you should know right this moment
And eventually…
Apple CEO Tim Prepare dinner (R) shakes palms with U.S. President Donald Trump throughout an occasion within the Oval Workplace of the White Home on August 6, 2025 in Washington, DC.
Win Mcnamee | Getty Photographs
How Massive Tech is paying its method out of Trump’s tariffs
High tech executives are on the forefront of a latest swathe of unprecedented offers with U.S. President Donald Trump. Specifically, Nvidia and Superior Micro Gadgets, in addition to Apple, have struck agreements with the White Home.
“The flurry of deal-making is an effort to safe lighter remedy from tariffs,” Paolo Pescatore, expertise analyst at PP Foresight, advised CNBC by electronic mail. Massive tech firms can “sick afford to fork out on thousands and thousands of {dollars} in further charges that may additional dent earnings as underlined by latest quarterly earnings,” Pescatore mentioned.
— Sam Meredith
Correction: This text has been up to date to mirror the proper day of U.S. inventory actions.
