Trump Slams Goldman Sachs CEO Over 'Bad Prediction' On Tariff Impact: 'I Think David Should Get A New Economist'

(MENAFN- Live Mint) President Donald Trump criticised Goldman Sachs CEO David Solomon, claiming the bank made a 'bad prediction' regarding how Trump's extensive tariff policies would affect markets and consumer expenses.

Taking to his Truth Social account, Trump wrote,“David Solomon and Goldman Sachs refuse to give credit where credit is due."

“They made a bad prediction a long time ago on both the Market repercussions and the Tariffs themselves, and they were wrong, just like they are wrong about so much else," he added.

Trump did not specify the reason for his dissatisfaction with the bank; however, his comments came after a Sunday research note from a Goldman Sachs economist indicating that the effects of the president's tariffs on consumer prices were just beginning to be evident.

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Consumers in the US have borne about 22% of tariff costs up to June. If the latest tariffs follow previous patterns, their share could increase to 67%, Bloomberg reported, citing a note from researchers led by Jan Hatzius, the bank's chief economist.

'David should get a new Economist,' says Trump

“I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution,” Trump wrote, hinting at Solomon's hobby as a disc jockey, which he temporarily paused following earlier criticism regarding his management of the bank's strategy.

Trump trade adviser Peter Navarro also called out Goldman during an interview on Bloomberg Television later Tuesday.

Comparing the bank with the US Bureau of Labour Statistics, Navarro said,“The only entity which has less respect in terms of their data than the BLS these days is Goldman Sachs."

Trump fired and replaced the head of the federal agency after revisions to employment data indicated a weakening US labour market.

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The statement against David Solomon follows the US President's recent remarks targeting major Wall Street lenders, accusing them of debanking clients for political reasons. The President has publicly criticised JPMorgan Chase & Co. and Bank of America Corp., asserting that they have denied clients based on political considerations, which the banks deny.

It has been less than two weeks since Trump met Solomon at the White House to discuss the bank's possible involvement in the plans for an initial public offering of government-owned mortgage giants Fannie Mae and Freddie Mac.

Trump's statement came after earlier data on Tuesday indicated that underlying inflation rose in July, despite a slower increase in goods prices. This eased worries about tariff-related price pressures and heightened hopes for a Federal Reserve rate cut in September.

(With inputs from Bloomberg.)

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