Goldman Sachs CEO dismisses ‘impending economic crisis’ amid rising recession fears

Goldman Sachs CEO David Solomon has dismissed warnings of a potential recession but said the U.S. trade war with China could cause economic concerns. 

“I don’t think we’re at a moment where there is an impending economic crisis. But look, things could change,” Solomon told CNN Business during an interview at the Iowa State Fair. 

Solomon acknowledged the economy is “slowing a bit,” but said the “underlying economy is still doing OK.”

{mosads}Solomon said he doesn’t necessarily agree with the comparisons that others are making between the current state of the economy and the lead-up to the 2007 recession. He told CNN “there is a tendency to look at things through the rearview mirror,” but the next recession will be “very different.” 

However, Solomon did raise concern over what could happen based on impending tariffs President Trump announced last week on Chinese goods.

“The chance of a recession in the near term is still relatively low. But we have to watch what’s going on with tariffs,” he said 

Trump announced a 10 percent tariff on $300 billion on Chinese goods to begin Sept. 1, while “trade talks are continuing.”

The president said the rate could increase to as much as 25 percent depending on whether the countries negotiate a deal. 

Combined with the existing 25 percent tariff on $250 billion in Chinese goods, the tariffs would cover almost all products the U.S. brings in from China. 

“At the moment, I think the real impact of tariffs has been small, but you’ll have to watch that carefully,” Solomon said. “Those are the kind of things that can change confidence. And confidence can slow down economic activity.”