In a recent interview, Goldman Sachs CEO David Solomon discussed the resilience of the U.S. economy and potential improvements in the trading environment. He also expressed concerns over escalating Middle East tensions. Speaking at a Future Investment Initiative conference in Riyadh, Solomon highlighted that the U.S. economy is performing well and is on a soft landing trajectory.
Goldman Sachs recently reported a 45% rise in third-quarter profits, driven by unexpected gains in stock trading and a rebound in investment banking. Solomon noted that while upcoming U.S. elections could bring change, the trading environment is undeniably improving.
Solomon also expressed concerns about heightened tensions in the Middle East, particularly between Israel and Iran, which have reached their highest levels in decades. Recent Israeli military actions in Iran are a response to missile attacks, increasing regional instability.
While these tensions pose risks to security and growth, Solomon noted they have not significantly impacted regional activities yet. He also warned of regulatory risks around the upcoming U.S. elections, which could affect policies influencing the economy in 2025 and 2026. Regardless of the election outcome, Goldman Sachs is prepared to support the new government and its clients.
Solomon voiced mild concern over Europe's economic state but emphasized the strong momentum of the U.S. economy. Global financial leaders like Jane Fraser of Citigroup and Larry Fink of BlackRock also attended the Riyadh summit, underscoring its significance.
Additionally, Goldman Sachs inaugurated a new office in Riyadh's financial district, strengthening its presence in the region. Solomon remarked that the competition between Riyadh and Dubai is intensifying, which is beneficial as it elevates economic activity. The firm is well-positioned to serve expanding client interests as an investment bank and wealth management advisor in Saudi Arabia.
