Squawk Pod: Davos 2026 – Goldman Sachs CEO David Solomon

Original Air Date: January 23, 2026
Hosts: Joe Kernen, Becky Quick, Andrew Ross Sorkin
Main Guest: David Solomon, CEO of Goldman Sachs

Episode Overview

This episode, recorded at the World Economic Forum in Davos, features a wide-ranging interview with Goldman Sachs CEO David Solomon. The conversation covers optimistic growth prospects for the US and global economies, impacts of geopolitics, the role of AI and fiscal policy, challenges in consumer credit, and America's housing crisis. The hosts dig into recent developments in fiscal stimulus, debates about credit card caps, housing affordability, and the evolving global security landscape, focusing on Arctic policy and US-Canada relations.

Key Discussion Points & Insights

1. Economic Optimism and Growth Drivers

(04:31–05:48)

• Growth Outlook: Solomon expresses optimism for a continued US growth trajectory, buoyed by fiscal stimulus, deregulation, and AI-driven productivity gains.
• Quote:

  "We have a confluence of some very stimulative things that make us pretty optimistic about the level of growth that we could see in 2026... our view on nominal growth this year would be higher than the consensus."
  — David Solomon (04:44)

• Role of Fiscal and Regulatory Policy:
  Increased investment, especially through immediate expensing and AI infrastructure, is key. This is seen as a tailwind for future multi-year economic growth.
• Investment Cycle:
  Infrastructure buildout, while promising, is only at the early stages:

  "It's early. Right now it's more talk than it's actually happening. But there are a lot of people making significant commitments."
  — David Solomon (06:21)

2. Balancing Geopolitical Risk and Market Confidence

(07:06–10:28)

• Fragility Amid Opportunity:
  While business optimism abounds, Solomon cautions that fragile geopolitics, particularly uncertainties in US policy, Europe, and the Arctic, can be destabilizing.
• Noise vs. Substance:

  "One of the things I try to do is I always try to step back and say, okay, what's noise? What's actually substantively going on?"
  — David Solomon (08:38)

• Security as Prerequisite for Prosperity:

  "Security is a very, very important [part] of economic prosperity, for sure."
  — David Solomon (10:28)

3. Shifting Global Alliances & US-Canada-China Dynamics

(10:33–11:22)

• Mark Carney's Davos speech is discussed, positing that Canada may need to align more closely with China.
• Solomon downplays immediate concerns, emphasizing the depth of US-Canada economic ties over one-off comments:

  "I wouldn't let one speech at Davos at this moment in time drive a conclusion as to where things wind up."
  — David Solomon (10:50)

4. Consumer Credit & Biden’s Credit Card Cap Proposal

(11:22–13:10)

• Affordability Concerns:
  Solomon supports tackling affordability but opposes a 10% credit card interest rate cap, predicting tightened credit for most Americans.
• Quote:

  "I don't think that's a good idea. I think it would significantly constrain credit for most Americans."
  — David Solomon (11:59)

• Impact on Access to Credit:

  "You would have to have a credit score well into the seven hundreds as a consumer to get access to credit... I don't know, 3/4, 80% of American consumers would be constrained in credit."
  — David Solomon (12:30)

• The role of credit cards in managing household cash flow—beyond just carrying balances—was highlighted as crucial for working Americans.

5. Housing Crisis and Institutional Investment

(13:10–14:53)

• Institutional Home Buying:
  Big firms purchasing homes are exacerbating affordability and supply concerns.
• Depreciation Loophole:
  Discussion of how companies can depreciate large home portfolios whereas individuals cannot.
• Quote:

  "To really get at the housing issue, I think we've got to get at supply... The lack of supply has made the prices higher and people don't have the down payments."
  — David Solomon (13:22)

• Policy Ideas:
  Considering letting people use 401(k) funds for down payments is 'an interesting idea', though long-term effects need evaluation.
• Restricting institutional buyers (e.g., Blackstone) might reduce marginal pressure but isn't a full solution due to diverse institutional involvement.

Notable Quotes & Moments

• On US Growth:

  "...the business environment sets up very well. Business people feel unleashed, you know, all over the world and want to invest..." — David Solomon (07:55)

• On Market Sentiment & Geopolitics:

  "Markets don't like uncertainty... there's been a variety of narratives that have created a little bit more uncertainty. And then there have been narratives that have followed up that seem to have taken the uncertainty out."
  — David Solomon (07:37)

• On Security:

  "If we come out of this with... a strengthening of Arctic security for the US and Europe, that will be a good thing for the world."
  — David Solomon (09:44)

• On Housing Affordability:

  "Things that we can do to accelerate [home ownership] and make it more accessible will be very positive."
  — David Solomon (13:54)

Timestamps for Key Segments

• Economic Outlook and Growth Drivers: 04:31–06:21
• Geopolitical Risk & Market Impact: 07:06–08:55
• Security and US-Europe Relations: 09:44–10:28
• US-Canada-China Dynamics/Carney Speech: 10:33–11:22
• Credit Card Cap/Affordability: 11:22–13:10
• Housing Crisis & Policy Responses: 13:10–14:53

Conclusion

David Solomon’s Davos interview offers a cautiously optimistic view of the US and global economic outlook, driven by stimulus and innovation, but urges caution about the risks stemming from political and geopolitical instability. He is skeptical of quick-fix consumer credit caps and housing solutions, advocating instead for structural improvements—especially increasing supply and investing in sustainable growth. The episode delivers both context and nuance on how top CEOs are navigating a volatile, fast-evolving global landscape.