Goldman Sachs Group Inc. (NYSE:GS) CEO David Solomon said Wednesday the U.S. economy remains in “pretty good shape” despite geopolitical uncertainty, arguing that artificial intelligence will be a key driver of long-term productivity and economic growth.
Speaking on Fox News’ Special Report, Solomon said the economy continues to show resilience even as businesses navigate rapid technological change, tensions between the U.S. and China and the ongoing conflict in the Middle East. He described AI as a “technology super cycle” that is reshaping business activity and creating opportunities for future productivity gains.
AI Drives Long-Term Optimism
Solomon said he remains optimistic about the U.S. economy over the next three, five and seven years, citing the country’s strength in entrepreneurship, capital formation and technology innovation.
“I’m a huge optimist on the U.S., huge optimist on the U.S. with a 3, 5, 7-year view,” Solomon said.
He acknowledged the economy still faces headwinds, particularly from geopolitical tensions in the Middle East, but said those challenges have not changed his constructive long-term outlook.
“The economy is solid. Are there headwinds? … Absolutely,” Solomon said, adding that the conflict in the Middle East has been “a little bit of a headwind.”
The comments come two days after Goldman Sachs reported stronger-than-expected second-quarter results, with Solomon saying clients continued bringing their most strategic transactions to the firm as investment banking activity accelerated and business pipelines remained strong.
Optimism Meets Caution
Solomon’s outlook echoes comments from JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon, who earlier this week described the U.S. economy as resilient, supported by business investment and hiring, while cautioning that geopolitical conflicts, persistent inflation, large fiscal deficits and elevated asset prices remain risks.
Not everyone is as optimistic, however. Last month, Moody’s Analytics Chief Economist Mark Zandi warned that while AI investment and business spending continue supporting economic growth, weakening consumer finances, declining real disposable income and historically low savings rates are emerging “yellow flares” that could signal underlying economic strain.
Price Action: Goldman Sachs shares closed 1.06% higher at $1,152.07 on Wednesday. The stock edged 0.27% lower to $1,149.00 in premarket trading Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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