Goldman Sachs COO Warns 3.8% PCE Inflation Is Economy’s Biggest Risk
GS•Goldman Sachs COO John Waldron flagged inflation as “the single biggest risk element” to the economy, citing the April PCE index’s 3.8% year-over-year rise—the highest in three years. He warned rising longer-term global interest rates could drive up capital costs and shift consumer behavior despite resilient AI-driven infrastructure financing.
1. Waldron’s Inflation Warning
John Waldron, Goldman Sachs’ COO, described inflation as “the single biggest risk element” to the economy and expressed personal concern over its trajectory, emphasizing its potential to undermine economic stability.
2. April PCE Data Highlights
The Personal Consumption Expenditures index climbed 3.8% in April, marking its highest annual gain in three years and reflecting oil-driven price pressures linked to the Middle East conflict.
3. Interest Rates, Capital Costs and AI
Waldron cautioned that further increases in longer-term global interest rates could elevate the economy’s cost of capital and influence consumer spending, while noting that AI-driven infrastructure projects remain unusually resilient to rate hikes.




