Goldman Sachs unveils new lobbying push in Congress
Goldman Sachs CEO David Solomon says the US economy is in for a downturn
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Goldman Sachs has organized a lobbying push to get Congress to reauthorize the Small Business Administration.
Sachs' 10,000 Small Businesses program organized 3,000 small business owners to sign onto a Wednesday letter urging Congress to revamp the SBA for the first time in more than 20 years, according to The Hill.
"The SBA was on the frontlines of the federal government’s pandemic response, and they helped millions of small businesses remain open and retain workers. But the pandemic also exposed significant gaps, inefficiencies, and areas where SBA reform is needed to more effectively support our nation’s job creators and innovators," they wrote.
Sachs' small business group has pushed for the revamp since this summer when inflation and recession fears were at their highest.
INFLATION SURGED MORE THAN EXPECTED IN SEPTEMBER AS PRICES REMAIN PAINFULLY HIGH
The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. (REUTERS/Andrew Kelly/File Photo / Reuters Photos)
Goldman Sachs CEO David Solomon expressed skepticism about the outlook for the U.S. economy at an investment conference in Saudi Arabia in late October.
Solomon said at the time he anticipates that economic conditions would "tighten meaningfully from here" and that the Fed could hike rates beyond the expected peak range 4.5% to 4.75% if inflation does not cool and the labor market remains extremely tight.
FED BARRELS TOWARD ANOTHER 75-BASIS-POINT RATE HIKE AS HIGH INFLATION PERSISTS
"But if they don’t see real changes — labor is still very, very tight, they are obviously just playing with the demand side by tightening — but if they don’t see real changes in behavior, my guess is they will go further," he added. "And I think generally when you find yourself in an economic scenario like this where inflation is embedded, it is very hard to get out of it without a real economic slowdown."
David Solomon, chief executive officer of Goldman Sachs & Co., speaks during the Bloomberg New Economy Forum in Singapore. (Bryan van der Beek/Bloomberg via Getty Images) (Photographer: Bryan van der Beek/Bloomberg via Getty Images / Getty Images)
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Solomon went on to say that he expects the U.S. to enter a recession soon.
"I think most likely we might be in a recession in Europe, and so until you get to that point where you see a change — whether it’s in labor, the demand side — you are going to see central banks continue to move on that trajectory," he said.
Fox News' Megan Henney contributed to this report.