Trump advises Goldman Sachs' CEO to recruit a fresh economist, following the bank's assertion that consumers will primarily bear the brunt of tariff expenses.
In a recent development, Goldman Sachs economists have maintained that Americans will bear the majority of the costs from the tariffs enacted by President Donald Trump. According to the latest research, if current patterns continue, consumers are projected to absorb approximately two-thirds of the costs by October[1].
Jan Hatzius, Goldman Sachs' chief economist and one of the most followed economists in Washington and on Wall Street, has been at the forefront of these predictions. His team's forecasts share similarities with those of other leading financial institutions that are warning of tariff-related sticker shock.
However, President Trump has strongly opposed these findings, expressing anger and frustration with the predictions. He has questioned the accuracy of these analyses and has been critical of Goldman Sachs' leadership, including CEO David Solomon and indirectly, economist Jan Hatzius[1]. Trump's administration contends that there is no clear evidence linking tariffs to inflation, a stance contradicted by many economic analysts outside the administration[1].
Despite a slew of higher tariffs Trump has enacted over the past few months, consumers have not experienced tariff-related sticker shock so far. The annual inflation rate, according to the latest Consumer Price Index, remains at 2.7%[2].
On a separate note, President Trump has urged Goldman Sachs CEO, David Solomon, to get a new economist. Trump has been vocal about his displeasure with Solomon's economic predictions, going as far as suggesting that Solomon should focus on being a DJ instead of running a major financial institution. Solomon gave up his DJing side gig two years ago due to pressure from the bank's board[3].
Goldman Sachs did not comment on President Trump's remarks.
[1] Based on information from various bullet points. [2] New inflation data published Tuesday showed consumer prices rose 0.2% in July (Source: Bullet point 6). [3] Solomon previously performed regularly at high-profile events (Source: Bullet point 11) and gave up his DJing side gig two years ago due to pressure from the bank's board (Source: Bullet point 12).
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