Goldman Sachs CEO David Solomon sees 'very small chance' of US recession

There is a “very small” chance that the US economy tips into a recession, despite the uncertainty surrounding global trade policy, according to Goldman Sachs Group Inc. Chief Executive Officer David Solomon.

President Donald Trump is executing on the view that imbalances exist in trade, Solomon said at the Australian Financial Review Business Summit in Sydney on Tuesday.

“Exactly how he executes is some of the uncertainty I’m talking about,” Solomon said.

Trump said Monday he’s plowing ahead with new tariffs on Canada and Mexico. That’s contributing to volatility in equity and bond markets, with investors weighing up the prospect of a potential deterioration in global growth.

Meantime, the White House said Trump has signed an order doubling tariffs on China to 20% that will take effect shortly after midnight in Washington.

“The Chinese economy faces significant headwinds,” Solomon said Tuesday.

Blackstone Inc. CEO Steve Schwarzman earlier Tuesday told the same conference that his firm’s quarterly survey of the 250 companies it owns show the US economy is in good shape, with none of the executives surveyed expecting a recession this year.

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