In comments published on the firm's website on Wednesday, Goldman Sachs CEO David Solomon stated that the Federal Reserve's future decisions on interest rates in 2025 will likely remain within a limited range unless there is a significant shift in the inflation trajectory.
Solomon highlighted the impact of soft durable goods inflation rates and the challenges posed by services and food costs on the economy. He emphasized that these factors would play a crucial role in shaping economic outcomes. Regarding capital markets, Solomon expressed optimism for increased activity in 2025, especially in deals involving private equity firms. Goldman Sachs exceeded Wall Street expectations for fourth-quarter earnings, achieving its highest quarterly profit in over three years due to successful deal-making by investment bankers and favorable trading conditions.