What Goldman CEO David Solomon is thinking

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Quick Fix
Business leaders are feeling better about President Donald Trump's agenda than they were in the aftermath of the 'Liberation Day' tariff announcements.
But with major trade deals still outstanding — and key questions about future tax policy and the federal government's fiscal trajectory unresolved — CEOs are starting to plan for 2026 with an incomplete roadmap on how major economic policies will shake out, Goldman Sachs Chairman and CEO David Solomon tells POLITICO.
'At the moment, there's a sense that things are moving forward constructively,' Solomon said in an interview shortly after Trump touted a new agreement with China that represented a further de-escalation in trade tensions. 'People would like the level of certainty around the policy direction to continue to increase.'
As with all things in Trump 2.0, the direction of travel can change on a dime. Hours after the China framework was unveiled — and Treasury Secretary Scott Bessent told lawmakers that the administration would likely delay its July 8 deadline for trade negotiations— the president said he would unilaterally set tariff rates in the coming weeks. (The interview with Solomon took place before both events.)
Wall Street banks and the overall economy have fared well despite the uncertainty generated by abrupt changes to tariff rates and Congress's stop-and-start progress on the 'big, beautiful bill' that's at the center of Trump's domestic agenda. While many investment bankers have been dour about the current state of dealmaking, Solomon was bullish on Goldman's pipeline and said both the economy and deal activity have proven 'more resilient than I would have expected.'
Trump, along with top administration officials like Bessent, have pointed to the string of recent economic data as a sign that the administration's overall agenda is working — despite the bellyaching of most economists — and that growth should accelerate when the tax and spending bill is enacted.
Solomon shares the administration's perspective that current tax cuts should be extended. Nevertheless, with bond investors skittish about how the legislation could affect deficits, the banker said that the long-term outlook for future economic growth is hazy.
'We're in a place where we've increased our debt and deficit levels. And there doesn't seem to be a path — at the moment — to reducing them,' he said. 'That's something that I think we're going to have to wrestle with. And it's something that, over time, has the potential to crowd out investment and slow down growth.'
'Can we have a higher level of growth that can make it easier for us over time to absorb the spending levels and the deficit levels that we have?' he added. 'That's unclear at this point and time.'
You can read my full Q&A with Solomon in POLITICO Magazine.
IT'S FRIDAY — If anyone else reading this happens to run a major U.S. bank, I'd like to hear from you. Email me at ssutton@politico.com.
Driving the Day
University of Michigan's preliminary consumer sentiment reading for June is out at 10 a.m. …
Breaking overnight — Eric Bazail-Eimil: 'Israel said Thursday that it launched a 'preemptive strike' against Iran, raising the specter of a broader regional conflict between the long-time Middle East adversaries.'
Rates on the brain — Trump lashed out at Federal Reserve Chair Jerome Powell once again over interest rate policy on Thursday, labeling the central banker a 'numbskull' for not reducing borrowing costs. 'We're going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] 'I don't see enough reason to cut the rates now,'' Trump said, per CNBC's Kevin Breuninger.
— 'Let's say there was inflation. In a year from now, raise your rates. I don't mind, raise your rates. I'm all for it. I'll be the one to be calling you,' Trump said, according to Bloomberg's Justin Sink. 'He'll be too late for that, too.'
On trade — Trump also raised expectations for when his administration will broker a comprehensive trade agreement with China, writes Doug Palmer.
Plouffe heads to Coinbase — David Plouffe, a top Democratic strategist and former adviser to President Barack Obama and Vice President Kamala Harris, is joining Coinbase's global advisory committee, Christine Mui and Chris Cadelago report.
On the Hill
Rescissions, rescissions — From Katherine Tully-McManus and Jennifer Scholtes: 'House Republicans have narrowly advanced a request from the White House to claw back $9.4 billion that lawmakers have already approved for public media and more than a dozen accounts across the State Department focused on foreign assistance.'
Cost of doing business — Low-income households stand to lose as much as $1,600 a year in federal resources due to cuts in the House version of Trump's 'big, beautiful bill, per Jennifer's write up of the latest analysis from the Congressional Budget Office. Annual resources to the highest-income households would climb by $12,000.
— The CBO and projections from the Penn Wharton Budget Model and Yale Budget Lab have consistently estimated that the legislation will add to the deficit over the next decade. Treasury Secretary Scott Bessent told Senate Finance lawmakers on Thursday that he expects the opposite to occur, per Bloomberg's Cam Kettles.
— From Yahoo Finance's Ben Werschkul and David Foster: 'The claims from 1600 Pennsylvania Avenue go as high as $8 trillion in black ink (an $11 trillion chasm with the experts) in claims that go beyond what even Capitol Hill Republicans are projecting … As for reconciling the two, some economists essentially throw up their hands.'
Mad-libbing SALT — Senate Republicans may leave out the House's higher state-and-local tax deduction from its version of the bill in order to allow negotiations to continue. Senate Finance Chair Mike 'Crapo and I had a long conversation about it,' said Sen. Markwayne Mullin (R-Okla.) per Benjamin Guggenheim and Jordain Carney. 'Maybe it'd be better to just carry communication rather than stake our flag right down.'
Not so fast — Senate Banking Chair Tim Scott (R-S.C.) threw cold water on Texas Republican Sen. Ted Cruz's effort to include language in the megabill that would bar the Fed from paying interest to banks, Jasper Goodman and Victoria Guida report.
Next step in stablecoins — Jasper also reports that the Senate's landmark stablecoin legislation moved one step closer to passage on Thursday, clearing a procedural vote 67-30.
At the regulators
New IRS chief — The Senate voted along party lines to confirm Billy Long to be the next head of the Internal Revenue Service. The former six-term Missouri congressman will enter the tax agency 'during a period of upheaval' due to workforce reductions and an overhaul of its technology systems, reports Bernie Becker.
Regulatory uncertainty — The pace and volume of regulatory shifts that have occurred so far this year are creating 'unanticipated business risks,' according to KPMG's mid-year report. 'Growing regulatory divergence and fragmentation add another layer of complexity to establishing a clear path from strategy and operations to effective risk and compliance,' Amy Matsuo, the consulting firm's U.S. regulatory insights leader, said in a statement. 'Will a deregulatory policy really equate to deregulation?'

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Miami Herald

22 minutes ago

• Miami Herald

Florida Democrats look to stop the bleeding during annual political conference

A question loomed over Democratic party leaders and volunteers on Saturday as they pumped hip hop through the speakers at the Seminole Hard Rock Hotel and Casino Hollywood: can Florida Democrats find a way to win next election season? Democrats in Florida have faced stinging losses on the ballot, especially over the past six years. Some point to fundraising issues as the cause. Others point to shrinking voter registration numbers. At Leadership Blue, an annual Democratic conference, several elected officials and party leaders agreed on one thing: they have a messaging problem, and President Donald Trump might help them solve it. Democrats mentioned immigration, tariffs and potential cuts to healthcare as issues that have caused division in Florida districts that voted Republican. Deportations in South Florida were central to the discussion, with issues like revoking Temporary Protected Status, instating travel bans and targeting immigrants who have not committed crimes roiling Hispanic communities. 'I think what's happening from the federal government being compounded by the state government, in terms of immigration, gives us an opening,' said Samuel Vilchez Santiago, chairman of the Orange County Democrats. Last year, Trump and Florida Republicans put a message out that they were for the working class, said Santiago, who is Venezuelan-American. He said Hispanic communities in Florida, many of which helped the Republican Party win competitive districts in Miami-Dade County, believed Trump would deliver on promises to lower the cost of living. But Democrats say Trump has failed to deliver, and they plan to take advantage of it. Those unfulfilled promises, combined with growing negative sentiment toward immigration enforcement, may give them an edge during next year's midterms, Santiago said. Kentucky Gov. Andy Beshear, who paid a visit to Leadership Blue, felt the same. Beshear, a Democratic governor in a red state, thinks Florida Democrats have a way to portray themselves as people that can bring change. 'What you'll start seeing is people who don't just feel regret, but they feel betrayal,' Beshear said, speaking about Trump's campaign promises. 'Because someone who told them they were focused on them is now telling them their kids have too many toys.' As a whole, though, some admit they could have done better with reaching out this past election cycle. Millie Herrera, a longtime Democrat and part of the party's budget and finance committee, thinks the party could improve in reaching out to every Hispanic community in Florida. Herrera, who is Cuban-American, thinks it's time to organize locally and year-round, rather than just during election season. In her Hialeah community where she runs a small business, she said she often hears Hispanic people say that Trump had promised to only deport criminals. The Democrats knew that wasn't true, she said, but failed to communicate that. This time, she is confident they will do better. 'We have always been for working people,' Herrera said. 'We have always been for immigrant communities. Maybe what we need to concentrate in our message is reminding them who has been there for us.' Present at Leadership Blue and handing out blue jolly ranchers to attendees, David Jolly, the former Republican congressman who announced his run for governor of Florida as a Democrat on June 5, said Florida is ready for a change and ready to build a coalition that leads with democratic values. While previously acknowledging Democrats have failed voters in the past, Jolly is hopeful Florida is ready for a change: A Democrat governor. 'This is a Democratic party that is united, and united to win,' Jolly said. Recent ups and downs Wins have been hard to come by for Florida Democrats. In April, Democrats witnessed defeats in two special elections for Florida congressional seats despite creating a stir by outraising Republican candidates. But even in defeat, Democrats celebrated because they outdid their previous numbers in both districts, viewed as deep-red and won in November by Trump by over 30 points. Josh Weil and Gay Valimont, running to representdistricts on the eastern coast of Florida and Pensacola, respectively, narrowed the gap to under 20 points each in their races. At the time, Republican Party of Florida Chairman Evan Power likened the Democrats' campaigns to 'setting millions of dollars on fire.' But Democrats see it differently. Because they overperformed, Santiago said, it's a sign that grassroots fundraising is the right path for the party. Weil raised around $15 million, with the majority of it coming from donations that were $200 or less. Weil, who launched his campaign for the U.S. Senate last week, said the last couple of years have been tough. As a public school teacher and single father navigating the rising costs of living, he said Floridians are unsatisfied. 'People are really disappointed in what they have right now, particularly in our red districts here in Florida,' Weil said. But becoming competitive again in Florida will be a challenge. Florida Democrats have increasingly lost ground in a state that was once considered purple. Over the past six years, Republicans have won by wider and wider margins in elections for both state and national office. The 2018 midterms were the last to deliver something resembling success for the Florida Democrats. They gained two Congressional seats, seven Florida Legislature seats and one statewide seat — with current party Chairwoman Nikki Fried winning the race for commissioner of agriculture. Since then, Republicans have surged in the state, securing super-majorities in the Florida Legislature, expanding GOP dominance in the Florida congressional delegation and ending the days when Florida was known as the nation's largest swing state. Trump and Gov. Ron DeSantis — who likes to compare the Florida Democratic Party to roadkill — both won their most recent races in the state by double digits. In November, Miami-Dade County voted Republican for the first time in a presidential election since 1988. Alongside Miami-Dade, other left-leaning metro areas in the state swung red as well: Hillsborough County, Pinellas County, Duval County and Osceola County. Pouring salt on the wound, state Sen. Jason Pizzo, who served as the Senate Democratic leader in the Florida Legislature, told his colleagues earlier this year that he was changing his party affiliation, saying the Democratic Party is 'dead' in Florida. Pizzo now says he'll run for governor as an independent candidate. Still, Fried — who said Pizzo's resignation as party leader was 'one of the best things to happen to the party in years' — said Democrats in Florida are united and the party's message is succinct. She said she wants people to know that the Democrats are not giving up on them. Despite disdain or criticism from former members of the party, Fried said the party embraces a culture of respect where everyone is welcome, feels seen, is listened to and has a say. 'We talk with one voice, and we really have created a coalition in our state that people feel like you don't have to always agree with everybody inside the party,' Fried said. 'That's what the benefit of being a Democrat is — we are a big tent, which means there's going to be different sides of the spectrum.'

Newsweek

30 minutes ago

• Newsweek

Map Shows Where US Strikes Hit in Iran

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A map shows where the U.S. struck three of Iran's main nuclear sites on Saturday, bringing the U.S. directly into the conflict between Iran and Israel after speculation over whether America's self-styled role as peacemaker-in-chief would embroil Washington in Israel's large-scale attacks. Trump said on Saturday evening that the U.S. had carried out "massive precision strikes" to take out Tehran's nuclear enrichment facilities and its ability to make a nuclear weapon. The strikes were a "spectacular military success," Trump said. "Iran's key nuclear enrichment facilities have been completely and totally obliterated." The U.S. struck Fordow, Natanz and Isfahan, Trump said. Israel launched attacks on Iran's nuclear facilities and scientists—as well as the country's ballistic missile sites and other military assets—late on June 12 U.S. ET. Among those targets were Natanz, Iran's most significant nuclear enrichment site, and Isfahan, to the southwest of Natanz. North to south: a Newsweek map shows Iran's key nuclear facilities of Fordow, Natanz, and Isfahan. North to south: a Newsweek map shows Iran's key nuclear facilities of Fordow, Natanz, and Isfahan. Newsweek But Israel could not effectively target Iran's nuclear program at Fordow, which Iran built under a mountain south of Tehran. Only the U.S.'s B-2 heavy stealth bombers and massive munitions work for that type of attack, experts said. An unnamed U.S. official told Reuters that B-2s were involved in the strikes on Saturday after the news agency reported that the U.S. had moved heavy bombers to the Pacific island of Guam. The U.S. hit Natanz and Isfahan with Tomahawk submarine-launched cruise missiles, two senior Pentagon officials told CBS News. Iran says its nuclear program is peaceful, but senior officials have publicly debated developing a nuclear weapon. The United Nations' nuclear watchdog, the International Atomic Energy Agency (IAEA), said just ahead of the start of Israel's strike campaign that Tehran was not cooperating with its nuclear obligations for the first time in 20 years. Iran said it would get a new enrichment site in a "secure location" up and running. Israel and the U.S., as well as other countries allied with Washington, have insisted it is not acceptable for Iran to gain a nuclear weapon. What Has Iran Said? Iran's supreme leader, Ayatollah Ali Khamenei, had threatened the U.S. with "irreparable damage" if Washington became involved in strikes on the country. Iran's foreign minister, Abbas Araghchi, said in the hours before the U.S. strikes that Washington's involvement would be "very, very dangerous." "The events this morning are outrageous and will have everlasting consequences," the minister said in later remarks posted to social media on Sunday. Trump, in his own post to the Truth Social platform, said any Iranian retaliation against the U.S. would bring fresh American attacks "GREATER THAN WHAT WAS WITNESSED TONIGHT." Fordow, the Site Israel Couldn't Reach "A full payload of BOMBS was dropped on the primary site, Fordow," Trump said in a post to Truth Social late U.S. time on Saturday. Experts said it would likely take several of American GBU-57/B bombs—weighing in at a massive 30,000 pounds—to take out more than just the entrance to Fordow. Manan Raeisi, an Iranian lawmaker in the city of Qom, close to the site, told the country's semi-official Tasnim news agency that "critical infrastructure remains intact" at Fordow. Satellite imagery captured by Maxar on July 30, 2025, and provided by Google Earth shows the entrance to Iran's Fordow underground nuclear facilities. Satellite imagery captured by Maxar on July 30, 2025, and provided by Google Earth shows the entrance to Iran's Fordow underground nuclear facilities. Maxar/Google Earth "What was hit was mostly on the ground and fully restorable," Raeisi said. "Trump's bluff about destroying Fordow is laughable." Israel's president, Isaac Herzog, told the BBC on Sunday that Iran's nuclear program "has been hit substantially." The IAEA said on Sunday it had not detected any increase in off-site radiation after the strikes on the three sites. Iranian state media reported key nuclear sites had been evacuated ahead of U.S. attacks, with enriched uranium moved "to a safe location." Satellite imagery captured by Maxar, a space technology firm, on Thursday and Friday showed "unusual" vehicle activity at the entrance to the underground facility at Fordow.

New York Times

36 minutes ago

• New York Times

Live Updates: Trump Claims Success After U.S. Bombs Key Iran Nuclear Sites

Top Republicans in Congress swiftly rallied behind President Trump on Saturday after he ordered strikes on three Iranian nuclear sites, even as senior Democrats and some G.O.P. lawmakers condemned it as an unconstitutional move that could drag the United States into a broader war in the Middle East. In separate statements, the leading Republicans in Congress, Speaker Mike Johnson and Senator John Thune of South Dakota, the majority leader, commended the military operation, calling it a necessary check on Iran's ambitions of developing a nuclear weapon. Both men had been briefed on the military action before the strike was carried out, according to three people familiar with the matter who were not authorized to discuss it publicly. Mr. Johnson and Mr. Thune both argued that the airstrikes were necessary after Iran had rejected diplomatic overtures to curb its nuclear program. 'The regime in Iran, which has committed itself to bringing 'death to America' and wiping Israel off the map, has rejected all diplomatic pathways to peace,' Mr. Thune said. Image Senator John Thune, Republican of South Dakota, said that Iran rejected pathways to peace. Credit... Tierney L. Cross/The New York Times Mr. Johnson argued that the military action was consistent with Mr. Trump's muscular foreign policy. 'President Trump has been consistent and clear that a nuclear-armed Iran will not be tolerated,' he said. 'That posture has now been enforced with strength, precision and clarity.' But top Democrats, who were given only perfunctory notice of the strikes before they occurred, harshly criticized the move. 'President Trump misled the country about his intentions, failed to seek congressional authorization for the use of military force and risks American entanglement in a potentially disastrous war in the Middle East,' Representative Hakeem Jeffries, Democrat of New York and the minority leader, said in a statement. He said the president 'shoulders complete and total responsibility for any adverse consequences that flow from his unilateral military action.' Senator Chuck Schumer, Democrat of New York and the minority leader, demanded 'clear answers' from Mr. Trump on the operation and called for an immediate vote on legislation that would require explicit authorization from Congress for the use of military force. 'The danger of wider, longer, and more devastating war has now dramatically increased,' he said. Representative Jim Himes, the ranking Democrat on the Intelligence Committee, condemned the operation as unconstitutional and warned that it could drag the United States into a larger conflict. 'Donald Trump's decision to launch direct military action against Iran without congressional approval is a clear violation of the Constitution, which grants the power to declare war explicitly to Congress,' he said in a statement. 'It is impossible to know at this stage whether this operation accomplished its objectives. We also don't know if this will lead to further escalation in the region and attacks against our forces, events that could easily pull us even deeper into a war in the Middle East.' While Senator Tom Cotton, Republican of Arkansas and the chairman of the Intelligence Committee, called Mr. Trump's move 'the right call,' the top Democrat on the panel, Senator Mark Warner of Virginia, said he had taken steps that could drag the United States into a war 'without consulting Congress, without a clear strategy, without regard to the consistent conclusions of the intelligence community, and without explaining to the American people what's at stake.' Leading national security Democrats on Capitol Hill were not informed of the strikes until after Mr. Trump had posted about them on social media, according to three people familiar with the matter who would discuss it only on the condition of anonymity. And one high-profile Democrat, Representative Alexandria Ocasio-Cortez, called the operation grounds for impeachment. 'He has impulsively risked launching a war that may ensnare us for generations. It is absolutely and clearly grounds for impeachment,' Ms. Ocasio-Cortez of New York said in a post on social media. Democrats widely condemned the surprise attack as unconstitutional. But Ms. Ocasio-Cortez was the first on Saturday to say it was grounds for Trump's removal, breaking with party leaders who have avoided talk of impeachment since the president returned to the White House, after two failed attempts to remove him during his first term. The Constitution gives Congress the authority to declare war, but in modern times, presidents of both parties have unilaterally carried out attacks on other countries without congressional authorization. It has been decades since Congress voted on whether to authorize military force, and efforts to claw back the legislative branch's war powers have repeatedly stalled. Most of the praise immediately following the operation in Iran came from Republicans, many of whom argued that the bombings would not lead to a ground deployment of American forces in the region. 'To those concerned about U.S. involvement — this isn't a 'forever war' in fact, it's ending one,' Senator Markwayne Mullin, Republican of Oklahoma, said on social media. Senator Roger Wicker, the Republican chairman of the Armed Services Committee, called Mr. Trump's decision to strike in Iran 'deliberate' and 'correct.' 'We now have very serious choices ahead to provide security for our citizens and our allies and stability for the Middle East,' Mr. Wicker said in a statement. Senator John Fetterman of Pennsylvania, whose unqualified support for Israel has put him at odds with other members of his party, was one of the few Democrats to offer an immediate statement of support. He wrote on social media that the military action 'was the correct move.' 'Iran is the world's leading sponsor of terrorism and cannot have nuclear capabilities,' Mr. Fetterman added. 'I'm grateful for and salute the finest military in the world.' Other lawmakers, many of them Democrats who had already expressed concerns that the Trump administration was considering sidestepping Congress's constitutional power to declare war, immediately criticized the strikes on the nuclear sites. Image Representative Thomas Massie, center, said the strikes were not constitutional. Credit... Eric Lee/The New York Times Mr. Trump, 'did not come to Congress to explain his reasons for bombing a sovereign nation and to seek authorization for these strikes,' Representative Diana DeGette, Democrat of Colorado, said in a statement. 'These reckless actions are going to put the lives of American service members and American citizens at risk.' Representative Thomas Massie, Republican of Kentucky, who earlier this week introduced a bipartisan resolution that would require congressional approval before U.S. troops could engage in offensive attacks against Iran, wrote on social media that the attack was 'not Constitutional.' Carl Hulse and Megan Mineiro contributed reporting.