Solomon highlighted the dramatic shift in the monetary policy currently underway, after roughly 40 years of the Fed keeping rates low and buying government bonds to stimulate the economy, without having to worry about inflation.
“We’re now in the process of unwinding a multidecade period, and there are consequences to that,” he said. “There aren’t easy answers. There’s no silver bullet.”
The Goldman chief issued a cheerless economic outlook earlier this month, prompting Amazon founder Jeff Bezos to voice his agreement.
“In the distribution of outcomes, there’s a good chance we could have a recession in the United States,” Solomon said.
“Yep, the probabilities in this economy tell you to batten down the hatches,” Bezos responded.
