Fed may raise interest rates beyond 4.5-4.75%: Goldman Sachs CEO

Goldman Sachs CEO David Solomon

The Federal Reserve may raise interest rates beyond 4.5-4.75% if no tangible economic developments are detected, Goldman Sachs CEO David Solomon said during the Future Investment Initiative (FII) Conference, running Oct. 25-27 in Riyadh.

"If [Fed officials] do not see real changes – labor is still very, very tight – they are obviously just playing with the demand side by tightening. But if they do not see real changes in behavior, my guess is they will go further," Solomon was quoted as saying by Reuters.

A recession in the US is possible, the executive noted, indicating that Europe is likely to witness a crunch as well.