Trump’s deregulation ‘constructive for growth’: Goldman Sachs CEO

Goldman Sachs CEO David Solomon is expecting the incoming administration to take a more business-friendly approach, shifting focus toward deregulation. 

It’s a move he argues will stimulate economic growth and benefit businesses across the country.

During a discussion at the National Retail Federation’s (NRF) 2025 Retail’s Big Show, Solomon said the “regulatory pendulum had swung very hard over the course of the last 3 or 4 years.” In turn, chief executive officers were forced to hold back on investments due to regulatory pressure, Solomon said.

“This administration has sent a clear message that they want to swing that pendulum back,” Solomotold NRF CEO Matt Shay. “That’s very constructive for growth and investment.” 

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Solomon continued saying that the “the tone of deregulation is a very powerful catalyst for investment.”

New York investment firm Invesco published a report last month that also highlighted how it anticipates an “environment of hyper-deregulation,” which could drive economic growth.

“Regulatory reforms — in particular those that liberalize entry into markets — are likely to spur investment while tighter regulation of industry deters investment,” the firm wrote. “In addition, an environment of deregulation could have a psychological impact, unleashing ‘animal spirits’ in not just the economy but markets. 

David Solomon, chief executive officer of Goldman Sachs Group Inc., during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, US, on Tuesday, Dec. 6, 2022.  (Michael Nagle/Bloomberg via Getty Images / Getty Images)

But Goldman Sachs’ top boss warned that there is going to be “cocktail of change” as the new administration takes over and begins to implement policies, “some of which can be quite constructive, some of which have the potential to slow growth. And I think the thing we have to watch very, very carefully is how it’s all balanced.” 

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After President-elect Trump’s victory in November, Goldman Sachs, had released a forecast for the U.S. and global economies, which underscored how his administration’s planned tax cuts will boost growth, though more aggressive tariffs could dampen that impact.

The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S. (REUTERS/Andrew Kelly/File Photo / Reuters Photos)

Goldman Sachs economists led by Jan Hatzius projected that the U.S. economy should grow about 2.5% in 2025 according to their baseline projection, assuming that the second Trump administration will bring some fresh tax cuts, regulatory easing, reduced immigration as well as higher tariffs on products from China and imported autos.

Their base case doesn’t include a 10% across-the-board tariff on all imported goods, which Trump campaigned on, or a deportation program – both of which could have the effect of suppressing economic growth if implemented.

“We think that there are some offsetting effects: negative from tariffs and immigration, positive from fiscal policy and regulatory changes; and we get when we put this into our models offsetting effects and not a large net effect,” Hatzius previously said. 

FOX Business’ Eric Revell contributed to this report.