Goldman CEO David Solomon says inflation is ‘deeply entrenched’ in the global economy

Goldman Sachs CEO David Michael Solomon attends a discussion on “Women Entrepreneurs Through Finance and Markets” at the World Bank on October 18, 2019 in Washington, DC.

Solomon said that inflation is entrenched in the economy and that it is not clear whether the situation will improve later this year.

Solomon told analysts during a call that demand and supply were affected by the war on Ukraine and the Pandemic and that inflation was entrenched in the economy.

It is known that inflation is at multidecade highs, but how long will it persist? Solomon, who leads one of Wall Street's top advisors to corporations, then laid out one of the central debates occurring in markets right now.

Solomon said that CEOs of big global businesses told him that they continue to see inflation in their supply chains. There are signs that inflation will go down in the second half of the year, according to our economists. We will all be watching the answer very carefully.

Markets will remain choppy as central banks tighten financial conditions to combat inflation.

Solomon told an analyst that the campaign to fight inflation will start to take a toll on both corporate confidence and consumer activity.

The uncertainty has Solomon operating his New York-based bank cautiously, and the firm has opted to slow its rate of new hires.

Solomon said that they would manage all their resources cautiously because of the current environment.