Trump administration ‘builder of growth’: Goldman Sachs CEO

Goldman Sachs CEO David Solomon expects the incoming administration to take a more business-friendly approach, shifting focus to bankruptcy.

They argued that it would spur economic growth and benefit businesses across the country.

“The regulatory pendulum has swung too far in the last 3 or 4 years,” Solomon said during a panel discussion at the National Retail Federation’s (NRF) 2025 Retail Expo. In response, CEO officials said they were forced to halt investments due to uncontrollable pressure.

“This administration has sent a clear message that they want to swing that pendulum back,” Solomoto NRF CEO Matt Shay said. “This is very constructive for growth and investment.”

Walmart’s CEO, Dave Massimiliano, met with Trump through trade and investment

“The tone of elimination is a very powerful push for investment,” Solomon continued.

New York-based investment firm Invesco highlighted in a report last month how it expects a “hyper-deregulation environment” that could spur economic growth.

“Regulatory reforms – especially those that liberalize entry into markets – can encourage investment, while strict regulation of the industry can deter investment,” he wrote. “Furthermore, an uncontrolled environment can affect the psychology of “animal spirits” not only in the economy, but also in the market.

But the Goldman Sachs chief warned that there will be a “cocktail of changes” as the new administration takes office and starts implementing policies, “some of which could be very constructive, some of which have the potential to slow growth. And I think what we need to look at very carefully is how to balance it all.”

Fed Chair Jerome Powell said the central bank is in no rush to reach ‘neutral status’.

After President-elect Trump’s victory in November, Goldman Sachs released a forecast for the US and global economies that suggested how the administration’s proposed tax cuts would boost growth, although more aggressive tariffs could dampen that impact.

The Goldman Sachs logo is seen on the trading floor of the New York Stock Exchange (NYSE) in New York City, New York, US. (Reuters/Andrew Kelly/File Photo/Reuters Photos)

Goldman Sachs economists led by Jan Hatsius predict the US economy will grow by about 2.5% in 2025, assuming the second. The Trump administration It brings some fresh tax cuts, regulatory streamlining, reduced immigration, and higher tariffs on Chinese imports and auto imports.

Their premise does not include a 10% across-the-board tariff on all imports that Trump campaigned on or a deportation program — both of which, if implemented, could have the effect of slowing economic growth.

“We think there are some offsetting effects: negative from tariffs and immigration, from fiscal policy and regulatory changes; and when we put that into our models, we get offset effects, not a big net effect.”

Eric Revel of Fox Business contributed to this report.