Goldman Sachs CEO David Solomon said Wednesday the chances of a recession are quite small, even though the rate of economic growth is slowing.
“There is no question that the momentum of growth in the United States has slowed,” Solomon told Sara Eisen on CNBC’s “Closing Bell.” “That said, economic activity in the United States is still chugging along pretty well. I think we’re in a position, at the moment, where we should see reasonable growth during the course of the year.”
“The chance of recession in 2019 is quite small and the expansion should probably continue,” Solomon added.
U.S. stocks are off to a flying start to the year, but worries about the economy remain. The New York Federal Reserve said in a report that a record number of Americans are 90 days behind on their car payments.Meanwhile, optimism among small business owners fell for a fifth straight month in January.
These worries come while the U.S. and China try to strike a trade deal. Both countries have until early March to come to terms on trade. If that does not happen, additional U.S. tariffs on Chinese goods could take effect.
“The market is coming to a point of view that there will be progress on the trade talks,” Solomon said. “That’s an important next step for investors.”