Goldman Sachs on Monday revealed its latest financial results and outlook for the future, and in a deft feat of linguistics, its executives managed not to utter the word “tariff” once.
Instead, in an hourlong call with analysts, David M. Solomon, the bank’s chief executive, unfurled a bouquet of euphemisms, saying that there had been “landscape changes,” “uncertainty about how certain things that are close will proceed forward” and a change in “constructs” that impacted how international businesses “interact to the U.S. and global economic system.”
Asked directly about how the investment bank’s trading business was faring this month, Mr. Solomon stated that, “On April 2, a handful of things happened that shifted perspective, but I would say there were things going on before April 2 that shifted perspective,” as well.
That was the day that President Trump unveiled a wide swath of global tariffs, sending stock markets crashing and creating angst across the international economy.
As one of the world’s largest elite investment banks, Goldman finds itself very much in the middle of the market and economic turmoil that Mr. Trump’s tariff policies have unleashed. Those realities did emerge on Monday when Mr. Solomon, reading from prepared remarks, acknowledged that the chance of a recession was increasing and that “uncertainty around the path forward and fears over the potentially escalating effects of a trade war have created material risks to the U.S. and global economy.”
But based on their comments on Monday, the leadership at Goldman Sachs is not only avoiding the appearance of criticizing Mr. Trump, they are steering clear of mentioning him and the specifics of his policies all together.
The reticence from Goldman was particularly jarring given that last week several major Wall Street chieftains, including Jamie Dimon, head of JPMorgan Chase, and BlackRock’s Larry Fink, were more direct in their assessment of the turmoil. Other Wall Street titans have publicly blamed Mr. Trump’s tariff roll out for pushing the economy to the brink of a recession.
Big banks began to report their latest earnings last week, a quarterly ritual that has taken on new importance during the market turmoil that has accompanied the escalating trade war between the United States and its trading partners. Banks have historically been considered a barometer for the economy overall.
Goldman has long enjoyed close ties to Washington, a status quo that once gave it the nickname “Government Sachs.” And there is understandable reason for the bank’s executives not to want to touch the stove. The New York bank reported higher-than-expected revenue and profit for the quarter that ended March 31, with a profit of $4.6 billion, up 17 percent from the same period last year. Its shares were up roughly 2 percent on Monday, in line with the rise for stocks overall.
Shares are down 12 percent this year overall, as international lenders have been pinched by the threat of a recession that would discourage consumers and companies from borrowing from and working with banks such as Goldman.
Goldman’s business arranging and facilitating stock trades grew strongly: U.S. stock markets peaked during the quarter, before tumbling after Mr. Trump announced broad-based tariffs in early April. That helped offset a decline in investment banking fees, as deal making has slowed amid the uncertainty caused by Mr. Trump’s on-again-off-again tariff policy.
Mr. Solomon said on Monday that Goldman was experiencing “enormous” volume in currency trading, which was no surprise given that Mr. Trump’s tariffs have caused the price of the U.S. dollar to sink precipitously.
In his prepared remarks, Mr. Solomon said, “The administration’s focus on trade barriers and strengthening the U.S.’s competitive position is commendable.”
Shortly before the earnings were released, one Goldman executive briefed a group of reporters under the agreement that he not be named. As the interview began, a spokeswoman cut in to discourage questions about the trade war.
