Goldman Sachs

The bank’s strong performance under David Solomon makes it all the more notable that the board has reportedly considered replacing the 64-year-old CEO with president John Waldron, 57, potentially as soon as next year. According to The Wall Street Journal, the succession plan — which would move Solomon to executive chairman — could face a board vote in the coming months. Wells Fargo banking analyst Mike Mayo described the potential transition as one of the “smoother and more deliberate” leadership handovers on Wall Street.

However, a critical risk looms: Solomon may be reluctant to relinquish his position, while Waldron might not be willing to wait indefinitely. Solomon has successfully steered Goldman back on course following an unsuccessful venture into consumer banking earlier in his tenure. Bolstered by a dealmaking resurgence driven by the Trump administration and the artificial intelligence boom, Goldman has reemerged as a clean investment narrative for shareholders — the premier pure-play investment bank.

“It’s just very hard for a person like that to decide they are really going to retire,” said Charles Elson, retired University of Delaware law professor. “Being 65 years old today is like being 55 was 30 years ago.” Elson also pointed out that Solomon serves as chairman of Goldman’s board and wields outsized influence over the body, making it difficult to force him out.

Goldman spokesman Tony Fratto stated there is “no definitive timeline for succession” at the firm, noting that boards typically discuss succession planning across near, medium, and longer-term horizons.

‘There will always be tension’

Jeffrey Sonnenfeld of Yale School of Management, another expert on CEO succession, argued it would constitute poor governance if Goldman’s board attempted to “drive out a high performing CEO like David Solomon.” Since Solomon assumed the CEO role in 2018, Goldman shares have surged more than 300%, the second-best performance against the KBW Bank Index.

This leaves Goldman in a difficult position: Even if Solomon intends to depart within a year, he has minimal motivation to announce it. Doing so would render him a lame duck with diminished internal influence, according to Elson.

Conversely, if Solomon chooses to remain CEO amid an AI boom he believes is in its early stages, Waldron may grow impatient. After all, Waldron — Goldman’s president and chief operating officer — had reportedly been in discussions for leadership roles at alternative asset manager Apollo. To retain him, Goldman awarded Waldron an $80 million retention package extending through 2030. Even then, a well-funded suitor could still pursue Waldron, Elson noted.

“There will always be tension in a set up like that,” Elson said. “It’s like Prince Charles waiting for his mother to die. You can’t set your own priorities, because there’s someone else in charge.”

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Consumer prices rose less than expected in August year‑over‑year, per the Federal Reserve’s main inflation gauge, the Commerce Department reported on Wednesday.

The PCE price index rose a seasonally adjusted 0.3% for the month, bringing the 12‑month increase to 3.4%. Dow Jones‑surveyed economists had forecast a 0.3% monthly rise and a 3.7% yearly gain.

Stripping out food and energy, the PCE index climbed 0.2%, putting the annual core rate at 3.0%. Expectations were for a 0.3% monthly increase and a 3.3% yearly core figure.

Although the Fed officially tracks the headline PCE, policymakers usually view the core measure as a clearer signal of longer‑term inflation trends.

While the yearly increases were below forecasts, they arrived as the Bureau of Economic Analysis tweaked the calculation method for several index components. It was not immediately evident how those revisions affected the final numbers.

After the release, stock‑market futures edged higher and Treasury yields slipped. Traders dialed back the odds of an October Fed rate hike, shifting the next expected increase to December.

“This is good news for investors uneasy about the recent jump in bond yields, and it strengthens the argument against an October hike,” said David Russell, global head of market strategy at TradeStation. “Nevertheless, the data are already somewhat stale and do not capture this month’s spike in diesel prices.”

The report also noted that personal income rose 0.2% while spending rose 0.9%, compared with consensus estimates of 0.4% for income and 0.8% for spending.

Both figures remain well above the central bank’s 2% target, leaving open the chance that the Fed could follow its September rate increase with another hike at either its October or December meeting.

Energy costs drove the August price rise, though many other sectors also advanced. Gasoline surged 4.4% and transportation services climbed 1.4%. Energy goods and services overall rose 2.3%.

Goods and services prices each posted a 0.3% monthly gain.

In other Wednesday economic news, the Commerce Department said second‑quarter GDP grew at a 2.2% annualized rate, according to the final of three estimates. That was up sharply from the earlier 1.5% estimate and reflected stronger contributions from consumer and government spending as well as investment.

Real final sales to private domestic purchasers—a metric Fed officials monitor to gauge underlying demand—rose 4.6%, an upward revision of 0.4 percentage point.

Inflation measures for the April‑through‑June period were also a bit lower, with headline PCE prices up 5.0% and core at 3.3%, each 0.3 point below the prior estimate.

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