Trump mocks Goldman CEO, says bank made bad call on tariffs
A research note on Aug 10 by Goldman economists that said the impact of the president's tariffs on consumer prices was just starting to be felt.
WASHINGTON – US President Donald Trump assailed Goldman Sachs Group Inc chief executive officer David Solomon, saying the bank made a 'bad prediction' about the impact of Mr Trump's sweeping tariff agenda on markets and consumer costs.
'David Solomon and Goldman Sachs refuse to give credit where credit is due,' the president said on his social-media platform on Aug 12.
'They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else.'
Mr Trump didn't specify why he was upset with the bank, but his remarks follow a research note on Aug 10 by Goldman economists that said the impact of the president's tariffs on consumer prices was just starting to be felt.
Consumers in the US have absorbed an estimated 22 per cent of tariff costs through June, but their share will rise to 67 per cent if the latest tariffs follow the pattern of levies in previous years, according to a note by researchers led by Mr Jan Hatzius, the bank's chief economist.
'I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution,' Mr Trump added in his post, referencing Mr Solomon's hobby as a disc jockey, which he put on pause after earlier criticism over his handling of the bank's strategy.
A spokesperson for New York-based Goldman Sachs declined to comment on the president's remarks.
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Mr Trump trade adviser Peter Navarro also criticised Goldman in an interview later on Aug 12 on Bloomberg Television.
'The only entity which has less respect in terms of their data than the BLS these days is Goldman Sachs,' Mr Navarro said, comparing the bank unfavourably with the Bureau of Labour Statistics.
Mr Trump fired and replaced the head of the federal agency after revisions to jobs data showed a weakening US labour market.
The latest broadside follows Mr Trump's criticisms of some of Wall Street's biggest lenders, accusing them of debanking clients for political reasons.
The president has publicly lambasted JPMorgan Chase & Co and Bank of America Corp with claims they've refused clients on such grounds, allegations the banks deny.
Despite those tensions, the sector stands to benefit more broadly from the president's deregulation agenda and expectations for lower capital requirements.
It's also been less than two weeks since the president met with Mr Solomon at the White House to discuss his bank's potential role in plans for an initial public offering of government-held mortgage giants Fannie Mae and Freddie Mac.
The president's post came after data released earlier on Aug 12 showed underlying inflation picked up in July, though prices of goods rose at a more muted pace, tempering concerns about tariff-driven price pressures and raising expectations for a Federal Reserve rate cut in September. BLOOMBERG
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