Goldman Sachs CEO David Solomon speaks at the Reuters NEXT conference in New York, the United States, on December 10, 2024.
Mike Fresh | Reuters
The election of Donald Trump in November and the return of Republican power in Washington has begun to have an impact on the business community. Goldman Sachs CEO David Solomon.
Top executives at the bank said on a conference call Wednesday that while Trump has not yet taken office, other CEOs feel better about the direction of the economy and their businesses since the presidential election.
“There has been a meaningful shift in CEO confidence, particularly following the U.S. election results,” Solomon said, according to FactSet records.
“Additionally, there is a significant backlog of sponsor orders and an overall increase in deal interest, supported by an improving regulatory environment,” he continued.
The comments dovetail with survey data suggesting renewed confidence among business leaders. The latest Economic Conditions Survey from the Chicago Fed shows Improve prospects the next 12 months. NFIB small business optimism index rises to Highest level since October 2018 December.
To be sure, senior executives JPMorgan ChaseThe company’s earnings call said optimism among business leaders has yet to lead to loan growth, according to FactSet transcripts.
Stocks surged immediately after Trump’s victory, with investors cheering at the prospect of lower taxes and fewer regulations. However, many of those gains have since disappeared, in part due to recent increases in interest rates.
Trump, who is expected to return to the White House on Monday, is considered more business-friendly than outgoing President Joe Biden. During the campaign, Trump proposed lower taxes and fewer regulations, including on energy. However, his proposed tariffs have some investors and business leaders nervous about rising prices and the possibility of a damaging trade war.
Solomon made the remarks during a conference call to discuss Goldman Sachs’ fourth-quarter results. The bank beat revenue and profit estimates in the period, with its profit roughly doubling year-over-year.
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