Days after Goldman Sachs’ economists published findings about rising prices due to tariffs, President Donald Trump had some strong words for the bank’s CEO, David Solomon. He suggested that Solomon should find a new economist.
Trump claimed, “Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury.” He believes Solomon and Goldman Sachs aren’t giving him enough credit for their financial situation.
In a rather playful jab, Trump also suggested Solomon might be better off as a DJ, referring to his previous side gig. Solomon used to perform at events but set that aside two years ago when pressured by Goldman Sachs’ board.
The Goldman Sachs report indicated that consumers were absorbing about 22% of tariff costs through June. This figure is expected to rise to 67% by October if current trends continue. However, Trump did not mention this report directly.
Goldman Sachs remained tight-lipped about Trump’s comments. Notably, their chief economist, Jan Hatzius, has earned his place as a prominent voice in economic circles, even meeting with notable figures like President Biden and Federal Reserve Chair Jerome Powell.
Hatzius famously predicted that the U.S. would not enter a recession in 2023 when many others disagreed. His forecasts about tariff impacts align with other leading financial analysts, who warn that consumers may feel the pinch of these costs. Yet, so far, we haven’t seen significant price hikes despite the many tariffs the Trump administration has implemented.
Recent inflation data adds another twist to the conversation. As of July, consumer prices climbed just 0.2%, keeping the annual inflation rate at 2.7%, according to the latest Consumer Price Index. This indicates that while tariffs are a hot topic, the immediate effects on consumer prices haven’t fully materialized just yet.
As this debate continues, it’s clear that the economic landscape is complex and evolving. Public reactions on social media reflect a range of opinions, from those supporting Trump’s views to critics emphasizing the importance of economic realism. Understanding the intricate relationship between tariffs, inflation, and public sentiment remains vital in navigating these discussions.
For more detailed insights on economic trends, you can check the latest Consumer Price Index data.
