CFRA Director of Equity Research Ken Leon and Strategy founder Michael Lee discuss bank earnings and rising interest rates on ‘Morning with Mary’.
CEO of Goldman Sachs David Solomon expects the new administration to take a business-like approach, shifting its focus toward deregulation.
It’s a move he claims will spur economic growth and benefit businesses across the country.
During a panel discussion at the National Retail Federation’s (NRF) 2025 Retail’s Big Show, Solomon said “the regulatory pendulum has swung very strongly over the last 3 or 4 years.” On the other hand, CEOs have been forced to hold back on investment due to regulatory pressure, Solomon said.
“This administration has sent a clear message that it wants to swing that pendulum back,” said NRF Executive Director Matt Shay Solomot. “It’s very constructive for growth and investment.”
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Solomon went on to say that “the tone of deregulation is a very powerful catalyst for investment.”
New York-based investment firm Invesco released a report last month that also noted it predicted a “hyper-deregulation environment” that could boost economic growth.
“Regulatory reforms – particularly those that liberalize market entry – are likely to encourage investment while tighter regulation of the industry deters investment,” the company wrote. “Furthermore, an environment of deregulation could have a psychological effect, unleashing ‘animal spirits’ not only in the economy but also in the markets.
David Solomon, chief executive officer of Goldman Sachs Group Inc., during Bloomberg Television’s Goldman Sachs Financial Services Conference in New York, U.S., on Tuesday, Dec. 6, 2022. (Michael Nagle/Bloomberg via Getty Images/Getty Images)
But the Goldman Sachs chief warned that there will be a “cocktail of changes” when the new administration takes office and starts implementing policies, “some of which may be quite constructive, some of which may slow growth. I think the thing we have to do is very, very carefully monitor how it is all balanced.”
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After the victory of President-elect Trump in November, Goldman Sachs, released a forecast for the US and global economy, which emphasized that his administration’s planned tax cuts will boost growth, although more aggressive tariffs could dampen that impact.
The logo for Goldman Sachs is seen on the trading floor of the New York Stock Exchange (NYSE) in New York, New York, USA (REUTERS/Andrew Kelly/File Photo/Reuters Photos)
Goldman Sachs economists led by Jan Hatzius projected that the US economy should grow around 2.5% in 2025 according to their baseline projection, assuming that the second Trump administration it will bring new tax cuts, regulatory relief, reduced immigration as well as higher tariffs on products from China and imported cars.
Their base case does not include a blanket 10% tariff on all imported goods, which Trump campaigned on, or a deportation program — both of which could have the effect of suppressing economic growth if implemented.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| GS | GOLDMAN SACHS GROUP INC. | 626.00 | +13.05 |
+2.13% |
“We think there are some offsetting effects: negative from tariffs and immigration, positive from fiscal policy and regulatory changes; and when we put that into our models, we get offsetting effects, not a big net effect,” Hatzius said earlier.
Eric Revell of FOX Business contributed to this report.
