Goldman Sachs Group Inc. (GS) Chief Executive David Solomon said Tuesday the firm may have to scale back its operations in response to an economic slowdown.
The idea shouldn’t be surprising given how closely the company’s growth is tied to the global economy, Solomon told The Wall Street Journal’s CEO Council Summit. He also pointed to a hiring spree in the banking sector amid the pandemic-fueled dealmaking boom in 2020 and 2021.
Solomon said Tuesday he expects stock and residential real estate prices to be lower a year from now. He sees a 35 percent chance of a “soft landing,” in which the Fed keeps inflation in check without pushing the U.S. economy into recession, at 35 percent.
But there is also a “very, very reasonable possibility” of some sort of recession, he said.