Goldman Sachs chairman and CEO David Solomon speaks during Goldman Sachs analyst impact fund competition at Goldman Sachs Headquarters in New York City, U.S., November 14, 2023.\u00a0<\/p>\n
Brendan Mcdermid | Reuters<\/p>\n
Don’t mess with DJ D-Sol \u2014 Goldman Sachs<\/a> CEO David Solomon’s stage name when he’s rocking the clubs in his other life as a DJ<\/a>.<\/p>\n U.S. President Donald Trump criticized Goldman<\/a> on Tuesday for predicting that tariffs would push up inflation, and said Solomon “should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ.”<\/p>\n In response, Goldman defended the results of its study, according to a CNBC interview with the bank’s economist David Mericle.<\/p>\n \u00a0“If the most recent tariffs, like the April tariff, follow the same pattern that we’ve seen with those earliest February tariffs, then eventually, by the fall, we estimate that consumers would bear about two-thirds of the cost,” Mericle said.<\/p>\n Goldman, in fact, is not the only Wall Street bank putting forth this view.<\/p>\n UBS<\/a> senior economist Brian Rose wrote that “the downward trend in core inflation has been broken as tariffs start to feed through into retail prices,” while Michael Feroli, chief U.S. economist at JPMorgan Chase<\/a>, said in a note that tariffs could “add 1-1.5% to inflation, some of which has already occurred.”<\/p>\n Of course, a consensus view does not mean predictions will come true. Recall how economists were all but certain a U.S. recession would happen in 2023<\/a> \u2014 only for the economy to grow 2.5% that year<\/a>.<\/p>\n In any case, if Goldman \u2014 and economists from other banks \u2014is proven wrong on tariff-driven inflation, and Trump, in a hypothetical scenario, manages to somehow push Solomon out of his position, at least DJ D-Sol will still be out there spinning records.<\/p>\n \u2014 CNBC’s Jeff Cox contributed to this report<\/p>\n What you need to know today<\/p>\n Economists agree that higher tariff inflation is coming. Despite Trump on Tuesday slamming Goldman Sachs for predicting higher consumer prices, the bank is standing by its research<\/a>. Other Wall Street economists agree with its call<\/a>.<\/p>\n Trump is considering 11 candidates for Fed chair. Among the list of potential nominees<\/a> are Federal Reserve officials, a Bush administration economic advisor, Jefferies<\/a> Chief Market Strategist David Zervos and BlackRock’s<\/a> Rick Rieder.<\/p>\n New records for U.S. stocks again. The S&P 500<\/a> and Nasdaq Composite<\/a> climbed Wednesday to close at fresh highs<\/a>, with the Dow Jones Industrial Average<\/a> also rising. Shares of Paramount Skydance<\/a> popped 36.7%. However, Asia-Pacific markets mostly fell Thursday<\/a>.<\/p>\n xAI’s co-founder Igor Babuschkin leaves. Babuschkin said he’s starting a venture firm<\/a> to support AI safety research and invest in startups. Musk wrote, in response, “Thanks for helping build @xAI! We wouldn’t be here without you.”<\/p>\n [PRO] The state of India’s IT stocks after layoffs. Big Indian corporations, such as Tata Consultancy Services<\/a>, Infosys<\/a> and Wipro<\/a>, have either trimmed their workforce or hiring. Here’s what analysts think of the sector’s stocks<\/a> in light of those job cuts.<\/p>\n