US RECOVERY WILL BE A BUMPY RIDE, CLAIMS GOLDMAN SACHS CEO
America has embarked on the long road to recovery following the pandemic lockdown, but the path back to a healthy economy is littered with obstacles, according to Goldman Sachs CEO David Solomon.
"It will be a very very bumpy ride economically," Solomon stressed on Wednesday during an event with the Economic Club of New York, Anneken Tappe wrote for CNN Business on July 22, 2020.
Parts of the economy have shown signs of improvement in recent months, with the unemployment rate falling from its April peak and retail sales bouncing back. But this rebound could fizzle out in the coming months, Solomon warned.
"Even if -- in the best case scenario -- that the virus is eradicated or much more controlled… I think we'll run with very, very high unemployment for an extended period of time," Solomon said, adding that America is still in the early stages of feeling the pandemic's effect on the economy. In June, the unemployment rate stood at 11.1%, higher than the worst period of the 2007-09 financial crisis. "This crisis is a human crisis: It has a human toll and a human impact," Solomon said. "I think the economic scenario is uncertain [and] concerning, and I think markets are disconnected from that at the moment." The Dow and the S&P 500 closed higher Wednesday afternoon. The Nasdaq Composite, which also closed up, hit a record high on Monday.