Fed to avoid emergency steps to lower borrowing costs: Goldman CEO

Goldman Sachs Group Inc. CEO David Solomon predicted the Federal Reserve will avoid taking emergency steps to lower borrowing costs despite week jobs data, Bloomberg reported.

“I don’t expect that you’ll see anything before September,” Solomon said, “The economy will chug along and we probably won’t see a recession.”

Following the sell-off wave that rattled global markets earlier this week, investors expected that this would push the Fed to hold an emergency meeting – ahead of the one scheduled for September – to cut rates.

The markets were hit by the decision of Japan's central bank last week to raise rates, said the official, adding that the US jobs report was not shocking but was weaker than was expected.

"Based on economic data we currently see and the signals by the Fed, I believe that it will lower rates once or twice this fall", said Solomon.