Goldman Sachs CEO: ‘We Haven’t Quite Reached Peak [of Inflation] Yet’

HARLOW All right So ░░░░░░░░ the U S hit ░░░░░░░░ inflation This morning I ░░░░░░░░ the CEO of Goldman ░░░░░░░░ that and also what ░░░░░░░░ him most about the ░░░░░░░░ right now as we ░░░░░░░░ 40 year high inflation ░░░░░░░░ biggest interest rate hikes ░░░░░░░░ decades and the impact ░░░░░░░░ Russia s war in ░░░░░░░░ on energy and food ░░░░░░░░ starts Solomon The confluence ░░░░░░░░ a bunch of unusual ░░░░░░░░ at the same time ░░░░░░░░ Yes Solomon is is ░░░░░░░░ a is a different ░░░░░░░░ than we ve seen ░░░░░░░░ So a a a ░░░░░░░░ that completely shut down ░░░░░░░░ activity HARLOW Yes Solomon ░░░░░░░░ the world at the ░░░░░░░░ time for a significant ░░░░░░░░ of time the size ░░░░░░░░ amount of the fiscal ░░░░░░░░ and the fiscal stimulus ░░░░░░░░ with really the fact ░░░░░░░░ we have monetary policy ░░░░░░░░ very dovish for a ░░░░░░░░ long time and then ░░░░░░░░ the war in Ukraine ░░░░░░░░ Yes Solomon on top ░░░░░░░░ that we ve created ░░░░░░░░ much more complex macro ░░░░░░░░ and we have to ░░░░░░░░ of unwind or rebalance ░░░░░░░░ of that and that ░░░░░░░░ going to take some ░░░░░░░░ HARLOW Was it too ░░░░░░░░ stimulus coupled with those ░░░░░░░░ things I mean Lloyd ░░░░░░░░ your predecessor said a ░░░░░░░░ weeks ago we have ░░░░░░░░ much growth too much ░░░░░░░░ Solomon I I think ░░░░░░░░ s very easy with ░░░░░░░░ to say if you ░░░░░░░░ going to go back ░░░░░░░░ rewrite the play HARLOW ░░░░░░░░ d write it differently ░░░░░░░░ You d write it ░░░░░░░░ HARLOW That s an ░░░░░░░░ lesson right Solomon Well ░░░░░░░░ course it s an ░░░░░░░░ lesson but it s ░░░░░░░░ s it s also ░░░░░░░░ were going through a ░░░░░░░░ difficult period an unknown ░░░░░░░░ during the pandemic and ░░░░░░░░ were people that needed ░░░░░░░░ There were people that ░░░░░░░░ support Unfortunately we re ░░░░░░░░ really great at directing ░░░░░░░░ a very specific way ░░░░░░░░ people that need help ░░░░░░░░ wind up kind of ░░░░░░░░ to very broadly HARLOW ░░░░░░░░ would have gone smaller ░░░░░░░░ it differently Solomon I ░░░░░░░░ have gone smaller and ░░░░░░░░ you know to be ░░░░░░░░ directed to the people ░░░░░░░░ need help and not ░░░░░░░░ necessarily gone so deeply ░░░░░░░░ throughout the economy There ░░░░░░░░ some that might disagree ░░░░░░░░ that but I think ░░░░░░░░ hindsight when you think ░░░░░░░░ the size of the ░░░░░░░░ the amount HARLOW Yeah ░░░░░░░░ of money that went ░░░░░░░░ for two administrations by ░░░░░░░░ way HARLOW Yeah Solomon ░░░░░░░░ s it s quite ░░░░░░░░ and it s had ░░░░░░░░ effect HARLOW Do you ░░░░░░░░ 9 1 percent is ░░░░░░░░ U S inflation Are ░░░░░░░░ preparing for an environment ░░░░░░░░ higher inflation The U ░░░░░░░░ just hit 9 4 ░░░░░░░░ this morning Solomon I ░░░░░░░░ you have to prepare ░░░░░░░░ an environment of of ░░░░░░░░ inflation And the reason ░░░░░░░░ say that there are ░░░░░░░░ know if you listen ░░░░░░░░ our economists our economists ░░░░░░░░ saying they think that ░░░░░░░░ might be getting to ░░░░░░░░ inflation but if you ░░░░░░░░ out and you talk ░░░░░░░░ the business community most ░░░░░░░░ the big business you ░░░░░░░░ people that run big ░░░░░░░░ big supply chains still ░░░░░░░░ you know they they ░░░░░░░░ t think inflation s ░░░░░░░░ they see inflation continuing ░░░░░░░░ move So you know ░░░░░░░░ base case in thinking ░░░░░░░░ this we think there ░░░░░░░░ a good chance that ░░░░░░░░ haven t quite reached ░░░░░░░░ peak yet.”