Goldman CEO Warns U.S. Debt Could Hit $40 Trillion

Goldman Sachs CEO David Solomon warned that mounting U.S. government debt — now about $38 trillion and on track toward $40 trillion after this summer’s “big beautiful bill” — risks a “reckoning” for the economy if growth does not pick up. He said the pandemic accelerated borrowing and that refinancing at current rates could push debt into the low‑$40 trillion range. Solomon argued the path out is higher growth — for example raising trend growth from roughly 2% toward 3% — rather than primarily pursuing revenue measures. He said the U.S. economy looks healthy enough to keep near‑term recession risk low and acknowledged some hedging around the dollar while not seeing its global reserve role fundamentally erode. Goldman Sachs also reported better‑than‑expected third‑quarter profits as dealmaking rebounded.