Goldman Sachs Warns of Inflation Risks and Mega IPO Wave

Goldman Sachs CEO David Solomon has issued a warning about rising inflation risks driven by higher oil prices, which could begin altering consumer behavior as early as the second half of 2026. Solomon noted that US inflation accelerated at its fastest pace in three years in April, primarily due to increased energy costs tied to geopolitical tensions. This trend is expected to keep Federal Reserve interest rates elevated well into next year.

Despite these near-term risks, Solomon expressed confidence in US monetary leadership, including incoming Fed chair Kevin Warsh, emphasizing policy continuity amid inflation volatility. He also highlighted a strong capital environment ahead of a potential surge in blockbuster IPOs, with ample liquidity supporting what could be a record IPO cycle.

SpaceX is at the center of this pipeline, reportedly targeting a valuation of US$1.75 trillion in its planned listing. The company is expected to lead a broader wave of mega IPOs involving OpenAI and Anthropic, which together could add close to US$4 trillion in market value to public markets.

Solomon acknowledged elevated market enthusiasm, noting that investor sentiment is currently tilted toward risk-taking. He described a recent meeting with New York political leader Zohran Mamdani as constructive, expressing optimism about continued cooperation between policymakers and the business community.