Goldman Sachs CEO Warns AI Growth Hinges on Fiscal Discipline
David Solomon, Chairman and CEO of Goldman Sachs (NYSE:GS), spoke at the G20 finance meeting in North Carolina on Monday about the US economy. He stated that the consumer is still resilient, with strong earnings growth and a large investment cycle contributing to growth.
Solomon believes that artificial intelligence (AI) could drive massive growth for the US over the next 5-10 years, giving the country an opportunity to run at a higher growth rate. However, he warned that this growth is conditional on Washington being able to rein in fiscal spending.
The 30-year Treasury yield currently sits at 5.22%, and Solomon stated that if AI cannot deliver enough economic output, spending policy will eventually have to adjust. He also argued that the current level of government spending and debt means that the US must either grow faster or cut spending.