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Investing.com -- Goldman Sachs CEO David Solomon warned Thursday that the growing U.S. national debt could become problematic if economic growth doesn’t accelerate.
"If we continue on the current course, and we don’t take the growth level up... there will be a reckoning," Solomon told the Economic Club of Washington.
The U.S. national debt recently reached $38 trillion, a significant increase from $7 trillion since the financial crisis over 15 years ago.
"We should be concerned about this, not sounding an alarm bell," Solomon said. "But I do think over time, this is an issue."
He noted that the pandemic accelerated debt growth, adding that "it doesn’t seem like we have the ability to pull it back."
Despite these debt concerns, Solomon indicated the U.S. economy remains in good condition, with low chances of a near-term recession.
The Goldman Sachs chief also addressed concerns about the dollar’s global position, stating he doesn’t see its status as the world’s reserve currency eroding.
"When you get around the world, and you look at all the capital flows around the world, global allocators, 50% of their capital is coming into the U.S.," Solomon explained.
He acknowledged some changes in dollar hedging strategies but characterized these as "more at the margin," calling it "something to watch" while expressing no concern about "some fundamental shift" in the dollar’s role.
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