Goldman Sachs CEO: Fed may still cut rates by 50 bps; U.S. economy likely to achieve soft landing

Goldman Sachs CEO David Solomon believes the most likely outcome is a 25-basis-point cut at the Fed’s September meeting, with the odds of a 50-bps cut slightly over 30%. He expects the Fed to cut rates two or three more times before the end of the year. If the labor market weakens further, a 50-bps cut would be justified.

He also observed that CEOs attending consumer forums remain highly optimistic about the U.S. economy. Overall, Solomon sees the environment as still favorable for banking activities.