Goldman Sachs co-head of global banking and markets Ashok Varadhan advised investors to stay invested, citing three reasons for his constructive outlook. He does not expect the Federal Reserve to raise interest rates this year, sees oil settling well below $70 a barrel later in 2026, and believes a resilient economy will increasingly benefit from productivity gains tied to artificial intelligence. Varadhan said rates will stay on hold and that some inflationary forces, including tariffs, are receding, while AI will eventually become a disinflationary force. He also expects crude prices to retreat significantly, providing further relief on inflation, and noted that the economy's underlying nominal growth has remained durable, keeping him constructive on credit with expectations for fairly low realized defaults.
Goldman Sachs Group IncGoldman's co-head sees no Fed hikes and disinflationary AI, constructive for markets and credit.
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