Goldman Sachs CEO Predicts High Rates Will Persist But Not Return to 1980s Levels
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Goldman Sachs CEO David Solomon does not believe interest rates will return to 1980s highs of 19%, but rates will stay elevated compared to pandemic lows.
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Solomon predicts inflation will remain sticky, particularly around labor costs.
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A key driver of stubborn inflation is high home prices, as most homeowners have low mortgage rates locked in.
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The Fed is expected to leave rates unchanged at its November meeting, but will likely raise them again in December.
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The federal funds rate currently sits at 5.5%, while the historic average since 1970 is 5.42%.