Staff Reporter

David Solomon, CEO of Goldman Sachs, stated that the Trump Administration should prioritize striking trade deals to provide clarity for investors.

Speaking to CNBC on Tuesday, Solomon emphasized the importance of establishing a framework for these deals, saying, “It would be good to see a deal or two put forward so there’s a construct that people can understand.”

He noted that a clear roadmap could boost confidence in equity markets, helping investors plan for the future.

Solomon pointed out that financial markets often overreact to short-term changes, particularly in response to macroeconomic shifts like President Trump’s “reciprocal” tariffs.

“If we don’t reach a policy of certainty, where people can trust and rely, it will have longer-term implications,” he warned.

Solomon highlighted the growing concern among investors regarding uncertainty in the current macro environment, stating, “We’re in a very different macro environment than we were just a few months ago.”

He reiterated the concepts of “certainty” and “uncertainty” multiple times during the interview.

Reflecting on the shift since Trump’s inauguration, he noted initial optimism about reduced regulation, but expressed that uncertainty has increased rather than diminished, impacting asset prices and market stability.

IMF Downgrades US Economic Growth Forecast

On Tuesday, the International Monetary Fund reduced its forecast for US economic growth this year by 0.9 percentage points, bringing it down to 1.8% from its January estimate.

While the IMF does not anticipate a US recession, it has raised the probability to 40%, up from 25% in October.

The organization also downgraded its global growth forecast by 0.5 percentage points, now projecting a rate of 2.8%.