Trump Pressures Major Banks: Calls for Firing Chief Economists Over Critical Forecasts

President Donald Trump has once again stirred controversy — this time targeting the top of the US banking sector. On Truth Social, he sharply told Goldman Sachs CEO David Solomon to replace the bank’s chief economist or “just focus on being a DJ,” after a new Goldman Sachs analysis suggested that US households will soon bear most of the costs of his tariff policy.

Trump: Tariffs Don’t Cause Inflation, They Fill the Treasury In his post, Trump defended his trade strategy, insisting that tariffs have not caused inflation or “any other problems,” but instead have brought a “massive flow of money” into the US Treasury. Federal data shows that in July, tariff revenues reached nearly $28 billion. According to Trump, the costs tied to tariffs are borne mainly by foreign governments and companies, not American consumers. This contradicts the findings of a Sunday report by chief economist Jan Hatzius, which estimated that Americans had already paid 22% of tariff costs by June and that this share could rise to 67% by October if new tariffs have the same effect as earlier ones.

Criticism of Goldman Sachs and Personal Jabs Trump accused Goldman Sachs leadership of refusing to acknowledge the successes of his policies and reminded them that the bank had been wrong in the past when predicting tariff impacts. If Solomon doesn’t replace Hatzius, Trump quipped, he should “focus on the DJ booth rather than running a bank.” The report in question argued that many businesses would likely pass on the cost of new tariffs to consumers, shifting more of the burden onto households. Trump maintains that his approach protects domestic industry while delivering unprecedented revenue to the government.

Easing of the Harshest Measures and Tariff Cuts In recent months, Trump has scaled back parts of his tariff policy. His “reciprocal” tariffs, introduced in April, were paused shortly after implementation and resumed in a smaller form only last week. Tariffs on Chinese goods, which peaked at 145%, have been reduced to 30% since May.

Legal Battle Over Tariffs Heads to Court Tensions are also playing out in the courts. Trump warned US judges not to block his tariff plan, claiming it could trigger “a repeat of 1929” and an economic collapse. He argued that striking down the tariffs would damage stock markets and halt economic recovery. A federal appeals court is currently reviewing whether his trade measures comply with the International Emergency Economic Powers Act of 1977. Former House Speaker Paul Ryan told CNBC this week that the case could reach the Supreme Court, which might overturn the tariffs entirely.

Two Perspectives on the Same Issue While the Trump administration insists that tariffs are a tool to protect US industry, Wall Street economists warn of higher costs for consumers. Several companies have already confirmed plans to raise prices. Goldman Sachs has not publicly responded to Trump’s sharp remarks, but the dispute highlights the stark contrast between the White House’s narrative on who pays for tariffs and the financial market’s projections of their real impact.

#DonaldTrump , #USPolitics , #Tariffs , #TradeWar , #WallStreet

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