Goldman Sachs CEO Says Fed Unlikely to Cut Rates Before September
Solomon's Comments Come Amidst Weak Jobs Data
The Federal Reserve is unlikely to make emergency rate cuts before its next meeting in September, according to Goldman Sachs CEO David Solomon.
Solomon's comments come in the wake of weak jobs data released on Wednesday. The Labor Department reported that the U.S. economy added just 75,000 jobs in May, well below the 180,000 jobs that economists had expected. The unemployment rate remained unchanged at 3.6%.
The weak jobs data has raised concerns about the strength of the U.S. economy. Some economists have called for the Fed to cut interest rates to boost growth. However, Solomon said he does not believe that the Fed will take such action before its next meeting in September.
"I think the Fed is going to be very cautious about cutting rates," Solomon said. "They are going to want to see more data before they make a decision."
Solomon's comments are in line with those of other Fed officials. Fed Chairman Jerome Powell has said that the Fed is in no rush to cut rates.
The Fed's next meeting is scheduled for July 30-31. At that meeting, the Fed is expected to release new economic projections and hold a press conference.
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