Goldman CEO issues interest rate message

“We could see one or two rate cuts from the Fed in the fall,” David Solomon, chief executive of Goldman Sachs, one of Wall Street’s biggest banks, said. David Solomon, chief executive of New York-based Goldman Sachs, predicted the Fed would refrain from taking immediate steps to lower borrowing costs. “I don’t expect we’ll see anything before September. The economy will continue on its path and we probably won’t see a recession. I think based on the economic data we’re seeing right now and the messaging from the Fed, we’re likely to see one or two cuts in the fall,” Solomon said in an interview. The CEO said markets were shaken last week by Japan’s central bank’s decision to raise the country’s borrowing costs. The move forced many investors to cancel so-called carry trades, in which they borrow in Japan at low interest rates and buy higher-yielding assets elsewhere.