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The outlook for the U.S. economy is increasingly raising concerns among prominent figures on Wall Street. Following JPMorgan, Goldman Sachs has also issued a warning about the future direction of the U.S. economy.
Goldman Sachs CEO David Solomon publicly stated on Wednesday, September 10, that the U.S. economy is showing signs of weakness and emphasized that current trade policies are having a significant impact on economic growth prospects. In a media interview, he particularly stressed the need to "closely monitor" the latest employment data, which has begun to show signs of economic weakness.
Solomon particularly pointed out that the uncertainty of trade policies is hindering economic development. He stated that the ongoing trade negotiations and the uncertainty of policy implementation undoubtedly have a negative impact on economic growth. In addition, despite the unexpected decline in producer prices in the United States in August, Solomon still observed signs of persistently high prices, which adds new variables to the economic outlook.
It is worth noting that Solomon's views are not isolated. Just a day ago, JPMorgan CEO Dimon also expressed similar concerns in an interview. Dimon pointed out that the latest employment data revision report released by the U.S. Department of Labor corroborates the fact that the economy is weakening.
According to the latest data, the U.S. Department of Labor revised down the employment data by 911,000 positions, which not only exceeded Wall Street analysts' expectations but also set the largest revision magnitude in nearly two decades. This revision undoubtedly sounded the alarm for the health of the U.S. labor market.
However, Dimon also acknowledged that the current economic situation is complex and variable, with various signals intertwined. This complexity makes it more difficult to predict the direction of the economy and highlights the importance of closely monitoring various economic indicators.
Overall, the warnings from Wall Street giants like Goldman Sachs and JPMorgan reflect a deepening concern in the financial sector about the outlook for the U.S. economy. With ongoing uncertainty in trade policies and signs of weakness in the job market, the future direction of the U.S. economy will be of greater interest.