Goldman Sachs President: Inflation is the 'biggest single risk factor' for the current economy On May 29th, Goldman Sachs President and Chief Operating Officer John Waldron stated at the Bernstein Strategic Decisions Conference in New York that inflation is currently the "biggest single risk factor" for the economy and his personal biggest concern. Waldron is the second in command after Goldman Sachs CEO David Solomon. He warned that if global long-term interest rates continue to rise, it will push up the cost of capital for the entire society, suppress consumer spending, and have a wide-ranging impact on the economy. The Bureau of Economic Analysis (BEA) announced on Thursday that the Federal Reserve's preferred inflation indicator, the core PCE price index for April, rose 3.8% year-on-year, the highest level since 2023, far exceeding the Fed's 2% target. Affected by this, the bond market has once again issued a warning: the current interest rate level may not be sufficient to suppress inflation. According to CME Federal Reserve observation data, market pricing shows that the probability of the Fed raising interest rates this year has risen to 50.5%, surpassing for the first time the 49% required to maintain interest rates unchanged. A key factor in the current stickiness of inflation is that the AI driven infrastructure boom is insensitive to interest rates, weakening the effect of high interest rates on suppressing demand.