The Chief Executive Officer (CEO) of Goldman Sachs, David Solomon warned that the Federal Reserve (Fed) may continue to raise interest rates if inflation remains high.
Towards the release of US inflation data tonight, Solomon said inflation is still 'stubborn' and in his view, there is an opportunity for interest rates to continue to be raised.
If the Fed does so, the economic environment will be more challenging, he said in an interview with CNBC on Monday.
He said again, he was surprised by the resilience shown by the US economy despite the increasingly tight global conditions.
This raises the question of whether the US economy will experience a better 'soft landing' than expected.
*soft landing- economic transition from growth to slower but not causing recession.
In addition, Solomon also warned of future 'pain' in the commercial property sector due to higher interest rates.
