Contradicting Trump Again?

David Solomon, CEO of Goldman Sachs Group, stated that the Federal Reserve does not need to cut interest rates quickly. This remark contrasts with the Trump administration's pressure on the central bank to ease monetary policy.

According to futures contract pricing, the market widely expects the Fed to cut rates by 25 basis points at next week's meeting, and expectations for further rate cuts before the end of the year are also rising. A report from JPMorgan noted that if the Fed cuts rates as expected at the September 17 meeting, "it could turn into a 'sell the news' event as investors pull out."

This is not an isolated case. Solomon's former colleague, Beth Hammack, President of the Federal Reserve Bank of Cleveland, reiterated that she sees no reason for a rate cut this month, as current data shows inflation remains above the central bank's 2% target and is still trending upward.

Goldman Sachs' recent series of views have drawn fierce criticism from the Trump administration. Last month, the investment bank released a report warning that consumers would bear the cost of tariff increases. Subsequently, Trump posted on Truth Social, suggesting that Goldman Sachs CEO Solomon should "get a new economist" or "focus on being a DJ," a well-known hobby of his.

U.S. Treasury Secretary Scott Bessent has also recently intensified his criticism of Goldman Sachs, dismissing the bank's research on the impact of tariffs on American consumers and businesses. He stated on a program, "I built a pretty good career betting against Goldman Sachs."

For example, Standard Chartered now expects the Fed to cut rates by 50 basis points this month, double the previously estimated 25 basis points, citing weak August employment data. Barclays, on the other hand, expects the Fed to cut rates by 25 basis points at each of the remaining meetings in September, October, and December, whereas previous expectations were for rate cuts only in September and December.