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Trump Calls On Goldman to Replace Economist Over Tariff Stance
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Good morning, CFOs. Trump calls on Goldman Sachs to replace one of its economists; inflation holds steady; plus, Spirit Airlines cautions it may cease operations.
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Goldman Sachs Chief Executive David Solomon. PHOTO: CYRIL MARCILHACY/BLOOMBERG NEWS
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President Trump on Tuesday appeared to call for Goldman Sachs Chief Executive David Solomon to replace the bank’s top economist over his past predictions, in his latest broadside against executives he believes are undermining his goals.
Trump said on his Truth Social social-media platform that Solomon should “go out and get himself a new Economist” because the bank made a “bad prediction a long time ago” on the market and tariffs. The president asserted that tariffs haven’t caused inflation or other issues for the U.S. economy. He also questioned whether Solomon himself should focus on just being a DJ, a reference to the bank chief’s former side gig.
Trump appears to be referring to Jan Hatzius, the bank’s longtime chief economist, though he didn’t call him out by name or title. Hatzius is well-known on Wall Street for forecasting in 2008 that mortgage defaults could lead to a severe recession. Hatzius and his team have been among the many economists who have predicted tariff policies would dent labor markets, cause higher inflation and slow U.S. economic growth.
U.S. businesses have shouldered much of the tariff burden so far. In the latest round of earnings reports, companies such as Ford and General Motors reported big hits to the bottom line because of the effects of tariffs. But economists widely expect the burden to shift to U.S. consumers and, to a lesser extent, foreign governments, over time.
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Content from our sponsor: Deloitte
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As Private Capital Firms Consolidate, It Pays For Targets to Prepare
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With consolidation spreading across the asset-management industry, private capital firms can benefit from efforts to tighten up their financial management and reporting, and in the process, increase their value. Read More
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What Else Matters to CFOs
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Prices either fell or stabilized in July in the categories that consumers tend to pay most attention to: shelter, energy and groceries. PHOTO: RICHARD B. LEVINE/ZUMA PRESS
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Inflation held steady in July even as President Trump’s tariff increases left their mark on some consumer prices, keeping a Federal Reserve rate cut in play for next month.
Consumer prices were up 2.7% in July from a year earlier, the Labor Department said Tuesday, unchanged from June’s gain. That was below the 2.8% rise expected by economists surveyed by The Wall Street Journal.
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“Consumers might be taking some relief in the fact that some of their most common and most necessary purchases are seeing easing price pressures.”
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—Bank of America senior U.S. economist Stephen Juneau as year-over-year inflation held steady in July.
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The trade conflict between China and Canada escalated after Chinese authorities said they intend to impose a hefty tariff of about 76% on shipments of canola, a move Canadian farmers say would shut them out of the world’s second-largest economy.
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Spirit Airlines said it may not continue to operate if its financial results don’t improve faster than it previously expected.
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Elon Musk said Apple is behaving anticompetitively by promoting OpenAI’s ChatGPT while suppressing his Grok AI chatbot in the App Store, renewing his criticism of the iPhone maker’s partnership with OpenAI.
📰 Other headlines
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Citizens Financial Group, the Providence, R.I.-based bank holding company, has hired Aunoy Banerjee as its new executive vice president and CFO. Banerjee will join the company on Oct. 24 from U.K. banking giant Barclays, where he currently serves as finance chief of its Barclays Bank unit, Citizens said. The company in April said its current chief financial officer, John Woods, would leave on Aug. 15. Woods was appointed finance chief at State Street. Chris Emerson, currently
executive vice president and head of corporate planning and enterprise finance, will serve as interim chief financial officer until Banerjee takes up his new post, Citizens said.
PetMed Express, the Delray Beach, Fla.-based pet-pharmacy company, said Robyn D'Elia has departed as chief financial officer. Sandra Campos has also stepped down as chief executive, the company said. Campos and D'Elia entered into separation agreements with PetMed that entitles them to severance payments in the form of their current base salaries for 13 months and the accelerated vesting of a portion of their unvested restricted stock units. Chair Leslie C.G. Campbell has stepped in as interim CEO and Douglas Krulik, the company's chief accounting officer, has
assumed the role of interim principal financial officer. The departures were disclosed in a securities filing. The filing separately noted that the company's audit committee is still investigating anonymous whistleblower hotline reports about the timing of revenue recognition with respect to certain orders in the fiscal fourth quarter.
—Colin Kellaher and Dean Seal contributed to today’s Ledger.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.
Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.
You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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