(Bloomberg) – Goldman Sachs Group Inc. chairman John Waldron says inflation is the risk he is most concerned about right now.
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“It is not transitory,” Waldron told a conference Wednesday. “I have never seen a greater divergence between what is defined as transitory and what is seen day after day.”
The executive noted that inflation is the main source of concern for the short-term recovery, and said it could have a long-term impact on emerging markets.
“Most of the CEOs I speak to today are very concerned about the supply chain, about import costs – whether they be materials, commodities and increasingly labor,” he said at the annual meeting. of the Institute of International Finance (IFI), which is held again virtually this year.
His comments echo those of BlackRock Inc. chief executive Larry Fink, who said in an interview with CNBC on Wednesday that inflation “is definitely not transitory.” Jamie Dimon, who runs JPMorgan Chase & Co., noted that inflation probably won’t slow down in the coming quarters.
Waldron, the chief representative of Goldman’s CEO David Salomon, said inflation expectations have already been consolidated due to supply chain disruptions. He cautioned that it could take a year or two, maybe longer, for those challenges to ease.
“That really gives more time for those inflation expectations to solidify and hold,” Waldron said. “It is certainly a significant concern.”
Waldron’s warnings have a different tone than the leaders of HSBC Holdings Plc and Bank of America Corp., who downplayed the importance of inflation during the first two days of the IFI meeting. Waldron’s comments precede Goldman’s quarterly earnings data, which will be released on Friday.
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