Business leaders are more optimistic than they were last year that a recession can be avoided, Goldman Sachs Chairman and Chief Executive Officer David Solomon told investors at a Credit Suisse conference in mid-February.
Though inflation and US-China relations are causing strain, the chance for recession has lessened, Solomon said.
“I think it’s going to be, you know, a twisty, turn-y kind of road to navigate through this and get to the other side, but I think the chance of a softer landing feels better now than it felt six to nine months ago.”
As inflation has subsided and job growth remained strong, markets have come back, giving investors hope. The capital market activity has subsequently improved following 2022’s decline in initial public offerings and debt and equity issuance.
“Clearly the market has a sense that we’re putting inflation in the rearview mirror,” Solomon said.
The consumer price index rose 0.5% in January, translating to an annual gain of 6.4%, according to Labor Department statistics.
Other CEOs are similarly hopeful, Solomon said.
“Consensus has shifted to be a little bit more dovish in the CEO community, that we can navigate through this in the United States with a softer economic landing. [The American consumer has been] “much more resilient than people expected,” he said.
