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U.S. President Donald Trump criticized Goldman on Tuesday for predicting that tariffs would push up inflation, and said Solomon “should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ.”
In response, Goldman defended the results of its study, according to a CNBC interview with the bank’s economist David Mericle.
“If the most recent tariffs, like the April tariff, follow the same pattern that we’ve seen with those earliest February tariffs, then eventually, by the fall, we estimate that consumers would bear about two-thirds of the cost,” Mericle said.
Goldman, in fact, is not the only Wall Street bank putting forth this view.
UBS senior economist Brian Rose wrote that “the downward trend in core inflation has been broken as tariffs start to feed through into retail prices,” while Michael Feroli, chief U.S. economist at JPMorgan Chase, said in a note that tariffs could “add 1-1.5% to inflation, some of which has already occurred.”
