Goldman Sachs CEO David Solomon speaks at the Reuters NEXT conference held in New York City, USA on December 10, 2024.
Mike Seeger | Reuters
The election of Donald Trump in November and the return to Republican power in Washington is already starting to have an impact on the business world, said David Solomon, CEO of Goldman Sachs.
Bank executives said on a conference call Wednesday that other CEOs have felt good about the direction of the economy and business since the presidential election, even though Trump has not yet taken office.
“There has been a significant shift in CEO confidence, particularly in response to the results of the U.S. presidential election,” Solomon said, according to a FactSet transcript.
“Furthermore, there is a significant backlog of orders from sponsors, and overall trading appetite is increasing, supported by an improved regulatory backdrop.”
These comments are consistent with some survey data that suggests a newfound confidence among business leaders. The latest Chicago Fed Economic Survey shows an improved outlook for the next 12 months. The NFIB Small Business Optimism Index rose in December to its highest level since October 2018.
FactSet notes that executives attending JPMorgan Chase’s earnings call did say that business leaders’ optimism has not yet translated into loan growth.
Stocks soared immediately after President Trump’s victory as investors cheered the prospect of tax cuts and deregulation. However, due in part to recent interest rate increases, many of these gains have since disappeared.
Trump, who is scheduled to return to the White House on Monday, is generally seen as more pro-business than outgoing President Joe Biden. During his campaign, Trump campaigned on cutting taxes and cutting regulations, including in the energy sector. But his proposed tariffs have some investors and business leaders worried about soaring prices and the possibility of a destructive trade war.
Solomon’s comments were made during a conference call to discuss Goldman’s fourth-quarter results. The bank exceeded its sales and bottom line forecasts for the period, with profits nearly doubling compared to the same period last year.
