Trump’s deregulation ‘constructive for growth’: Goldman Sachs CEO

CEO of Goldman Sachs David Solomon expects the incoming administration to take a more business-friendly approach with a focus on deregulation.

It’s a move he claims will spur economic growth and benefit businesses across the country.

Speaking at the National Retail Federation’s (NRF) 2025 Retail Show, Solomon said that “the regulatory pendulum has swung very hard over the last 3 or 4 years.” In turn, CEOs have been held back by regulatory pressure, he said Solomon.

“This administration has sent a clear message that they want to swing that pendulum back,” said NRF CEO Matt Shay. “It’s very constructive for growth and investment.”

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Solomon went on to say that “the tone of deregulation is a very powerful catalyst for investment.”

New York-based investment firm Invesco released a report last month that also highlighted how it expects a “hyper-deregulation environment” that could boost economic growth.

“Regulatory reforms, particularly those that liberalize market access, are likely to stimulate investment, while tighter regulation of the industry will discourage investment,” the firm wrote not only in the economy but also in the markets.

David Solomon, chief executive officer of Goldman Sachs Group Inc., during Bloomberg Television at the Goldman Sachs Financial Services conference in New York, U.S., Tuesday, Dec. 6, 2022. (Michael Nagle/Bloomberg via Getty Images/Getty Images)

But the Goldman Sachs chief warned there will be a “cocktail of changes” as the new administration takes over and begins implementing policies, “some of which may be quite constructive, some of which I think have the potential to slow growth. that what we have to watch very, very carefully is how it all balances out.”

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After the victory of the newly elected President Trump in November. Goldman Sachs, he released a forecast for the US and global economies that highlighted how his administration’s planned tax cuts would boost growth, although more aggressive tariffs could dampen that effect.

The Goldman Sachs logo can be seen on the trading floor of the New York Stock Exchange (NYSE) in New York, New York, USA. (REUTERS/Andrew Kelly/File Photo/Reuters Photos)

Goldman Sachs economists led by Ian Hatsius predicted that the US economy should grow by about 2.5% in 2025, according to their baseline forecast, assuming that second. The Trump administration would bring some new tax cuts, deregulation, reduced immigration, and higher tariffs on goods and auto imports from China.

Their main case does not include a blanket 10% tariff on all imported goods, which the Trump campaign has pushed for, or a deportation plan, both of which could depress economic growth if implemented.

“We think there are some offsetting effects from negative tariffs and immigration, positive fiscal policy and regulatory changes, and when we put that into our models, we get an offsetting effect and not a large net effect,” he said earlier. Hatzius.

FOX Business’ Eric Revell contributed to this report.