Goldman Sachs CEO Lloyd Blankfein, buoyed by a White House full of his former colleagues, says he thinks the US economy feels “growthier” since Donald Trump took office.
Goldman’s former COO Gary Cohn is Trump’s top economic advisor, and former partner Steven Mnuchin is the treasury secretary nominee. Top Trump strategist Steve Bannon is also a Goldman alumnus. The bank’s stock has soared since the election, due in part to the administration’s vow to dismantle Dodd-Frank financial regulations.
Blankfein said in a video on the bank’s website that the market is shifting from a cycle of “pessimism about where we go” to “one in which it’s going to get growthier. More growth out there, more opportunity and one in which we are getting a bit more optimistic.”
If only Goldman’s own experts shared that view. As Trump has focused on restricting immigration and trade, the bank’s economists told clients last month that “the balance of risks is somewhat less positive” than when Trump was elected.
Goldman economist Alec Phillips cited difficulties replacing Obamacare, political polarization, and Trump’s disruptive policies: ”Some of the recent administrative actions by the Trump Administration serve as a reminder that the president is likely to follow through on campaign promises on trade and immigration, some of which could be disruptive for financial markets and the real economy.”