Even as top market voices caution against a full-blown trade war on US President Donald Trump’s protectionist policies and China’s retaliation, Goldman Sachs says that it would be negative for both countries, and the parties will try to avoid such a situation. In an interview to CNBC yesterday, Goldman Sachs CEO Lloyd Blankfein said that there are other major things at stake.
“We need each other on a lot of other things as well. Look at the security situation in the world with North Korea. There are other things at stake here, maybe bigger things at stake that will provide another impetus for us getting together and working these issues out,” Lloyd Blankfein said.
He added that he doesn’t blame President Donald Trump for his quest for a better trade arrangement between US and China. However, the Blankfein said that a “real aggressive, mean-spirited trade war is so bad,” that both the US as well as China will do what they can to avoid it.
In its latest monetary policy review released, RBI said has cautioned that global financial market volatility and potential trade wars pose a threat to an economic outlook. “Equity markets globally have shed most of the gains of the previous quarter in a heavy sell-off in February-March, caused by optimistic US job reports and the US imposition of new tariffs on Chinese goods,” RBI said. Goldman Sachs latest comments may come as a welcome relief to stock market participants.
In his interview, Blankfein said that looking at the facts and numbers to judge the prospects of the US economy, you can say things look “awfully good.” Blankfein said, “It feels like awfully good in a way that there could be a bit of a runway here for things to remain pretty good.”