Recession looming? Goldman Sachs CEO David Solomon’s two-word response brings big relief; here's what he said

US economy and rumors of a possible recession, Goldman Sachs CEO David Solomon provided some reassurance with a straightforward yet effective answer, as per a report.

Two words that gives hope

Addressing the issue of a possible recession during a speech at the Australian Financial Review Business Summit in Sydney on Tuesday, Solomon debunked the fear with just two words and said the chances are «very small,» according to The Street.

Rising economic signals

His comment comes during a period when economic signals have raised concerns of a potential recession among people.

The stock market, which has been on a two-year run with the S&P 500 recording back-to-back returns of more than 20%, has investors questioning whether the rally may have reached its peak. According to The Street, the S&P 500 dropped about 5% on March 4 from its recent peak as worries that the country is near a turning point to a slowing US economy.

On top of all that, disturbing signals have also appeared in the labor market. Unemployment is at 4%, which has increased from last year's 3.5%, reported The Street. A total of 244,000 new Unemployment claims were made last week, which is a notable increase from the 203,000 claims made in early January, the report added.

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