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4/17, 7:25 AM (Source: TeleTrader)
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Goldman's chief says US recession risk declined

David Solomon, chief executive of Goldman Sachs Group Inc., praised the world's largest economy, saying the United States is "chugging along pretty well" and "growing at trend" in the second quarter. He told CNBC on Wednesday that monetary policy has turned "much more accommodative" compared to the earlier risk-off sentiment amid the impact of the government shutdown, when activity was "relatively slow." In an interview in Ningbo, China, he walked back his comments from three months ago, when he estimated the risk of a recession in the US at 50% by the end of next year. It now "feels less than that" and it is "low," the giant lender's CEO stressed and pointed to the shift in the Federal Reserve.

Goldman Sachs aspires to "higher returns in time," he added. The central bank of the US isn't seen raising rates until late in 2020, Solomon revealed and claimed the possibility of policy easing is also low. Turning to the trade war, the bank's head, who took the reins half a year ago, said the US administration has been "trying to level the playing field" and moving toward rebalancing the relationship.

Breaking the News / IT