It is “uncertain” that the Federal Reserve will “push to land the plane smoothly” as it tightens monetary policy to fight inflation, said David Solomon, CEO of Goldman Sachs (GS).

“I’m concerned about the way forward,” Solomon told Yahoo Finance editor Andy Serwer at the Milken Institute’s global conference this week.

“I think we will find a way through. It is difficult to estimate if we will have a soft landing or if we will finally have a recession to slow down this inflation which is entrenched in the economy,” he added.

The Federal Reserve has telegraphed that it will continue to raise interest rates and begin quantitative tightening to combat high inflation.

Goldman Sachs Chairman and CEO David Solomon speaks during the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 2, 2022. REUTERS/Mike Blake

The markets reacted in a volatile way. Stocks deflated as Treasury yields rose in anticipation of aggressive central bank action.

“We’re really getting a response to a combination of loose monetary policy, the pandemic, the disruption it’s caused, significant fiscal policy – and we’re now coming out of the pandemic and trying to unravel all of that in a world much more complicated,” he said.

“I think the situation in Ukraine has made the world more complicated. Geopolitics in China has made the world more complicated. And so we have a more uncertain period that we will all have to go through,” Solomon said.

Solomon noted that Goldman Sachs presented a strategy in 2020 to grow the bank and diversify its revenue base with a broader base of products and services.

“We execute that,” Solomon said.

“It’s an environment that’s likely creating headwinds compared to the environment we lived and operated in in 2020 and 2021, but that doesn’t change our strategy,” he added.

Ines is a market reporter and covers stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, instagram, Youtube, Facebook, Flipboardand LinkedIn