Goldman Sachs CEO: "Trump's Populist Policies Will Boost U.S. Economic Growth"

Optimistic Outlook Ahead of November Midterms
Despite Risks..."A Constructive Year for Capital Markets"
FT: "Wall Street Shows Little Willingness to Confront Trump"

Solomon David, Chief Executive Officer (CEO) of Goldman Sachs. Reuters, Yonhap

David Solomon, Chief Executive Officer (CEO) of Goldman Sachs, predicted that President Trump will continue to roll out populist policies in the run-up to the U.S. midterm elections in November.

According to the Financial Times (FT) on the 10th (local time), CEO Solomon said at a UBS conference held in Miami, "There is a midterm election in the United States, and we have a president who wants to take populist actions ahead of it," adding, "These kinds of actions are generally stimulative for the economy."

As examples, he cited a 10% cap on credit-card interest rates, lower drug prices, and restrictions on institutional purchases of single-family homes, and said he was confident that "such measures will have a growth-boosting effect and will also be helpful to Goldman Sachs's overall investment banking (IB) business."

However, CEO Solomon warned that a number of variables could go wrong in areas such as trade, inflation, and geopolitical uncertainty. He meant that these factors could act as "bumps" that slow macro momentum.

Even so, he said, "2026 is very likely to be a fairly constructive year for both capital markets and mergers and acquisitions (M&A)," adding, "The outcome will be very favorable for the people in this room."

The FT pointed out that this kind of optimism contrasts with Wall Street's traditional stance, which has favored free markets and minimal government intervention. It also reported interpretations that condoning Trump's unorthodox policies shows how weak Wall Street's willingness is to confront President Trump publicly.

Ahead of the November midterm elections, President Trump appointed former Fed Governor Kevin Warsh to succeed Jerome Powell as Chair of the Federal Reserve (Fed). President Trump has publicly criticized Chair Powell and others, insisting that interest rates should be cut sharply. The current U.S. federal funds rate stands at 3.5% to 3.75%.

According to online betting sites Kalshi and Polymarket, the opposition Democratic Party is expected to take a strong lead in the House elections. In the Senate, the Republican Party is expected to maintain control.