Goldman Sachs CEO Predicts No Return to 1970-80s Interest Rates

Goldman Sachs CEO David Solomon downplayed the likelihood of interest rates reaching levels seen in the 1970s-80s, stating that a return to such high rates is unlikely. However, he believes that rates could go higher than their current levels of around 5.25-5.50% due to sticky inflation, particularly in labor costs. Solomon also noted that the U.S. economy can withstand another rate hike, citing the long-dated mortgages with low rates that many Americans have locked in. The Federal Reserve is expected to leave rates unchanged in its upcoming decision but may leave the door open for a rate hike in December.