Live news: Goldman CEO says chance of US avoiding recession ‘higher’ than a year ago

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David Solomon: ‘I actually think the economy has been more resilient over the course of the last 12 months than we expected’ © Reuters

Goldman Sachs chief executive David Solomon said the chances of the US economy avoiding a recession are “materially higher” than 12 months ago, but cautioned that inflation may remain stubbornly high.

“I actually think the economy has been more resilient over the course of the last 12 months than we expected . . . I think the chances of a soft landing now are materially higher,” Solomon said on Tuesday at an industry conference organised by Barclays.

“We’ve got inflation to a better place. I’m definitely in the camp that inflation might still be a little bit sticky and we’ve got more work to do. It may be kind of stickier, higher rates longer, but we’re in a much, much better position.”

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