Goldman Sachs CEO David Solomon predicts the U.S. economy will accelerate growth through 2026, driven by technology spending and fiscal support despite labor market weakness and geopolitical risks. He said AI infrastructure development and government spending remain key drivers.
Solomon previously warned that the economy was slowing due to President Trump’s trade policies. But he is now more optimistic, adding that the new regulatory environment is encouraging CEOs to be bolder in pursuing M&A activity in the U.S.
He also expects a pullback in the equity market in the next 12 to 24 months, after a big surge, especially in AI-based technology stocks. However, he sees the decline as a normal correction, not a systemic threat.
Goldman Sachs plans to invest $6 billion in technology by 2025 to improve productivity, although that amount is less than he would like. Solomon believes automation will eliminate some jobs but insists that the overall number of bank employees will still increase over the next decade.
He is confident that the firm can continue to grow and expand its services to more customers with the integration of new technologies, which he says will completely transform the bank's internal processes.
