CNBC Daily Open: Trump says tariffs haven't caused inflation — economists think they will soon

Don't messiness with DJ D-Sol — Goldman Sachs CEO David Solomon's signifier sanction erstwhile he's rocking the clubs successful his different beingness arsenic a DJ.

U.S. President Donald Trump criticized Goldman connected Tuesday for predicting that tariffs would propulsion up inflation, and said Solomon "should spell retired and get himself a caller Economist or, maybe, helium ought to conscionable absorption connected being a DJ."

In response, Goldman defended the results of its study, according to a CNBC interrogation with the bank's economist David Mericle.

 "If the astir caller tariffs, similar the April tariff, travel the aforesaid signifier that we've seen with those earliest February tariffs, past eventually, by the fall, we estimation that consumers would carnivore astir two-thirds of the cost," Mericle said.

Goldman, successful fact, is not the lone Wall Street slope putting distant this view.

UBS elder economist Brian Rose wrote that "the downward inclination successful halfway ostentation has been breached arsenic tariffs commencement to provender done into retail prices," portion Michael Feroli, main U.S. economist astatine JPMorgan Chase, said successful a enactment that tariffs could "add 1-1.5% to inflation, immoderate of which has already occurred."

Of course, a statement presumption does not mean predictions volition travel true. Recall however economists were each but definite a U.S. recession would hap successful 2023 — lone for the economy to turn 2.5% that year.

In immoderate case, if Goldman — and economists from different banks —is proven incorrect connected tariff-driven inflation, and Trump, successful a hypothetical scenario, manages to someway propulsion Solomon retired of his position, astatine slightest DJ D-Sol volition inactive beryllium retired determination spinning records.

— CNBC's Jeff Cox contributed to this report

Economists hold that higher tariff ostentation is coming. Despite Trump connected Tuesday slamming Goldman Sachs for predicting higher user prices, the slope is lasting by its research. Other Wall Street economists agree with its call.

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