trump tells goldman ceo to ditch economist, maybe focus on dj-ing
new york, Wednesday, 13 August 2025.
former president trump publicly criticized goldman sachs and its ceo, david solomon, over tariff predictions. trump went as far as suggesting solomon should replace the bank’s economist. goldman sachs estimated that consumers will absorb 67% of tariff costs by october. trump, known for his direct style, suggested solomon should ‘just focus on being a dj’. this unusual intervention sparks debate about political influence on economic analysis and potential market instability.
tariff impact and consumer costs
Trump’s criticism arose after Goldman Sachs economists, led by Jan Hatzius, projected that U.S. consumers would bear a growing share of tariff costs [2][3]. The report estimated that consumers had absorbed 22% of tariff costs by June, and this figure could rise to 67% by October if tariffs continue to impact the economy as they have been [2]. Trump contested this, asserting that tariffs have not caused inflation and that foreign entities primarily bear the costs [3]. He accused Solomon and Goldman Sachs of failing to acknowledge this [5].
market reaction and expert opinions
The unusual public dispute has drawn attention from Wall Street and economic media [1]. Some analysts believe Trump’s comments reflect his long-standing grievances against Goldman Sachs, particularly after the bank predicted a democratic victory in the 2024 presidential election would lead to an economic slowdown [1]. David Wagner, head of equities at Aptus Capital Advisors, suggests that Trump’s remarks should not significantly influence investment decisions, given the complexities of economic data [6]. The bank has declined to comment on the statements made.
goldman sachs’ role and potential conflicts
Goldman Sachs’ analysis suggests a significant shift in how tariff costs are distributed [4]. Their report indicated that U.S. companies initially absorbed 64% of the costs, while consumers bore 22% as of June [4]. However, by October, they project consumers will bear 67% of the costs, with companies’ share falling to below 10% [4]. This shift is attributed to the time lag in passing costs to consumers through higher prices [4]. It is notable that Trump met with Solomon recently to discuss Goldman Sachs’ potential involvement in the IPO of government-held mortgage giants Fannie Mae and Freddie Mac [3].
implications for investors
Investors should closely monitor inflation data and consumer spending patterns to assess the real impact of tariffs. Goldman Sachs estimates that tariffs have already increased core personal consumption expenditure (PCE) inflation by 0.20% [4]. They project further increases of 0.16% in July and an additional 0.5% between August and December [4]. This could bring the core PCE inflation rate to 3.2% by the end of the year, assuming a 2.4% underlying inflation trend [4]. These projections, if accurate, could influence Federal Reserve policy and market sentiment.