Goldman Sachs CEO David Solomon warned that inflation propelled by higher oil prices associated with the Iran war could prompt shifts in consumer behavior during the second half of 2026. U.S. inflation reached a three-year high in April, driven in large part by energy price increases tied to the conflict, and Solomon said continued upward momentum in inflation would be one factor likely to alter how households spend.
"Youre going to see more shifts in consumer behavior" if inflation continues to accelerate, Solomon said, while noting that current indicators have not yet revealed a broad-based change in consumer sentiment. He added that data released over the next six months could be the catalyst for a more noticeable shift.
On monetary policy, Solomon voiced strong support for the Federal Reserve and its newly appointed Chair, Kevin Warsh. Economists have been forecasting that the Fed will maintain current interest rate levels into next year, and Solomon communicated confidence in the institution's leadership and direction.
Solomon also discussed the wave of potential large-scale initial public offerings being prepared by several technology companies. The group of candidates includes SpaceX, OpenAI and Anthropic. According to two people familiar with the matter, SpaceX plans to target a valuation of $1.75 trillion in its planned IPO. Collectively, those three companies are expected to add nearly $4 trillion in market capitalization to public markets.
When asked whether those sizable listings could compete for investor funds and reduce available capital for other opportunities, Solomon dismissed that concern. "Theres enough capital for what were talking about at this flow at this point," he said.
Turning to market sentiment, Solomon observed that participants currently display more greed than fear. He cautioned that history shows exuberance can persist for long stretches and indicated he sees the present backdrop as presenting investment opportunities tied to new technologies.
Solomon also described a recent meeting with New York Mayor Zohran Mamdani as productive. "Im hopeful, as the mayor goes from campaigning to governing, that hell talk about and communicate around and support the business community broadly," he said.
Notable tickers mentioned in the discussion: SPCX, OAI, ANTP.