Trump Urges Goldman Sachs CEO to Hire a New Economist Amid Tariff Cost Debate
Published Time: 08-13-2025, 15:00
President Donald Trump has publicly criticized Goldman Sachs following a report suggesting that U.S. consumers are likely to bear the majority of costs from higher tariffs. Trump questioned the bank’s economic analysis and recommended that CEO David Solomon hire a new economist, reigniting debate over tariffs, inflation, and corporate forecasting.
Trump Challenges Goldman Sachs’ Economic Analysis
In a post on Truth Social on Tuesday, former President Donald Trump questioned the conclusions of Goldman Sachs’ economists, asserting that tariffs have not contributed to inflation or other economic issues. He stated, “Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers. David Solomon and Goldman Sachs refuse to give credit where credit is due.”
Trump also directed criticism at Goldman Sachs CEO David Solomon, suggesting he either hire a new economist or return to his former career as a DJ, jokingly noting, “I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution.”
Solomon, who previously performed at high-profile events as a DJ, stepped away from his entertainment pursuits under pressure from Goldman Sachs’ board two years ago.
Goldman Sachs’ Tariff Report Predicts Consumer Costs
Over the weekend, Goldman Sachs’ economists released a report indicating that Americans had absorbed 22% of tariff costs through June, with the share expected to rise to 67% by October if tariffs follow trends observed in earlier rounds. While Trump did not specifically reference the report, his remarks appear to respond to the broader implications of its findings.
The bank has declined to comment on the former president’s statements.
Chief Economist Jan Hatzius Gains Attention
Goldman Sachs’ chief economist, Jan Hatzius, authored the report predicting higher consumer costs. Hatzius is widely respected in both policy and financial circles, regularly consulting with figures such as President Joe Biden and Federal Reserve Chair Jerome Powell.
Hatzius was noted for accurately forecasting that the U.S. economy would avoid a recession in 2023, a prediction that set him apart from many other economists. His forecasts on tariff-related consumer costs align with other major financial institutions, which have also warned that tariffs may lead to increased prices for consumers over time.
Inflation and Consumer Price Trends
Despite concerns about tariffs, recent inflation data suggests that price increases remain moderate. The U.S. Consumer Price Index (CPI) for July showed a 0.2% monthly rise, keeping the annual inflation rate at 2.7%. This data indicates that, so far, the direct impact of recent tariffs on consumer prices has been less pronounced than some projections had suggested.
Economists note that while tariff-related price effects can be delayed, the current CPI trend suggests limited immediate consumer impact. Nevertheless, reports from Goldman Sachs and other institutions indicate that the longer-term effects could become more visible in the coming months if tariffs remain in place.
Broader Implications for Tariff Policy
Trump’s statements reflect a broader debate on the effectiveness and consequences of tariffs. Supporters argue that tariffs bolster domestic revenue and protect American industries, while critics warn they can indirectly increase costs for consumers and businesses.
Analysts emphasize that predicting tariff impacts is inherently complex, involving supply chain dynamics, international trade negotiations, and market responses. Goldman Sachs’ projections are part of a broader effort to quantify these effects, though they remain subject to debate and interpretation.
Looking Ahead
As the U.S. continues to navigate trade and economic policy, the discussion over tariffs, consumer costs, and inflation remains highly relevant. Goldman Sachs’ reports and Trump’s public critique underscore the tension between economic forecasting and political perspective.
Observers suggest that the coming months will provide clearer insight into whether tariff-related price increases will significantly affect consumer spending and overall inflation. Meanwhile, the debate between policymakers, economists, and business leaders highlights the challenges of interpreting and communicating complex economic data to the public.
Source: CNN – Trump tells Goldman Sachs CEO to hire a new economist after bank says consumers will pay bulk of tariff costs
