Goldman Sachs Group Inc. CEO David Solomon signaled this week that there’s no need for the Fed to rapidly cut rates, diverging from the Trump administration’s pressure on the central bank to loosen monetary policy.
UBS Group AG Chief Executive Officer Sergio Ermotti said the impact of global tariffs on the US economy and inflation remain unclear, making it harder to predict the outlook for Federal Reserve policy. “In the US, we still believe that growth will be there but the inflation question and how it plays out into the central bank’s policies remains open,” Ermotti said in a Bloomberg Television interview in Hong Kong on Sept 11.
While a reduction to interest rates by the Fed at its Sept. 16-17 meeting is baked into expectations, beyond that investors are shifting predictions on the pace of policy adjustments.
“The true issue on tariffs will be seen on consumers,” Ermotti, 65, said. “In the US, we need to see exactly if there is an inflationary aspect of tariffs. I think it’s unclear.”
