Goldman CEO Solomon says prospect of a US recession 'has increased'

Goldman Sachs (GS) CEO David Solomon said Monday that the imaginable of a recession "has increased" amid the uncertainties of a commercialized warfare and the caller challenges facing CEOs who are unsure astir however to program for the future.

Solomon made his comments to analysts aft releasing archetypal 4th results showing marketplace trading volatility helped assistance wide gross and profits portion concern banking fees dropped, the latest motion of however analyzable 2025 is turning retired to beryllium for immoderate of the biggest names connected Wall Street.

The CEO warned of much challenges to come, saying successful a connection Monday that "we are entering the 2nd 4th with a markedly antithetic operating situation than earlier this year" — a motion to the unknowns triggered by President Trump's assertive slate of caller tariffs.

He told analysts that economical maturation had been "slowing down" adjacent earlier the caller commercialized policies from the Trump administration, and the implementation of those policies "reset the imaginable of guardant maturation beauteous importantly each implicit the world."

The firm's firm and investing clients, Solomon added, "are acrophobic by the important near-term and longer-term uncertainty that has constrained their quality to marque important decisions," and the uncertainty astir the way guardant amounted to "material risk" for the US and planetary economy.

"The imaginable of a recession has accrued with increasing indications that economical enactment is slowing down astir the world."

Overall, archetypal 4th profits astatine Goldman Sachs roseate 15% from the year-ago play to $4.74 billion. Revenues roseate 6% to $15 billion.

But dealmaking pulled back. Fees from concern banking dropped 8% from the year-ago period. Advisory revenues earned from helping companies with mergers and acquisitions were down 22%, little than analysts' expectations.

One agleam spot was trading arsenic Goldman benefited from the marketplace volatility surrounding the archetypal treatment of Trump's archetypal tariffs successful February and March. Equity trading roseate a grounds 27%, and full trading gross was $8.59 cardinal — Goldman's champion 4th since it earned $10 cardinal successful the mediate of 2009.

Some of Goldman's rivals connected Friday besides offered respective warnings astir the economical uncertainties ahead.

JPMorgan Chase (JPM) CEO Jamie Dimon said the system faces "considerable turbulence," adjacent arsenic his slope reported a emergence successful archetypal 4th profits, and that concern banking "clients person go much cautious amid an summation successful marketplace volatility driven by geopolitical and trade-related tensions."