Top managers of the largest Wall Street banks in recent days gave more optimistic assessments of the prospects for the U.S. economy compared with previous forecasts, writes the Financial Times.
In particular, bankers now see a higher probability that the Federal Reserve will be able to provide a so-called “soft landing,” that is, to combat high inflation, while managing to avoid recession.
“The consensus among corporate executives has shifted slightly in a more positive direction. The sagging economy is now expected to be milder than many expected six months ago,” Goldman Sachs Group chief David Solomon said Tuesday at an event hosted by Credit Suisse.
A positive tone also prevailed in a speech by Bank of America Corp. Brian Moynihan, who noted the high consumer activity and resilient profitability of mid-cap companies.
“Consumers have money. They have jobs, they’re spending money and taking out loans,” Moynihan said at a conference on financial services.
Wells Fargo Chief Financial Officer Michael Santomassimo also pointed to “very good consumer spending data.”
Such comments contrasted with statements by bank executives last year when they expressed serious concerns about the state of the U.S. economy, notes the FT.
Despite the growth of optimism, grounds for concern remain. In particular, the head of Goldman Sachs said that the future trajectory of inflation is still unclear, high rates of growth in consumer prices can be observed for quite some time, which will affect the economy as a whole.
“I think we’re going to see weaker, slower growth for a while,” Solomon said.
Earlier, the Club of Experts consolidated and analyzed economic indicators of Ukraine and the world, more details in the video at the link
