NEW YORK CITY, New York: Goldman Sachs CEO David Solomon said consumers could begin changing their spending habits in the second half of 2026 if inflation rises further due to higher oil prices.

Speaking at an Economic Club of New York event, Solomon said the impact of rising energy costs has not yet materially altered consumer behavior, though that could change in the months ahead.

U.S. inflation rose at its fastest pace in three years in April, driven by higher energy prices linked to the Iran war. The increase has reinforced expectations among economists that the Federal Reserve will keep interest rates unchanged well into next year.

"You're going to see more shifts in consumer behavior," Solomon said. "You can see some economic data in the next six months that shifts the sentiment," he said. "But for the moment, that's not coming through."

Solomon also expressed confidence in the Federal Reserve and its leadership, including Warsh. "I have enormous confidence in the Federal Reserve, its governors and the new chair Kevin Warsh," he said.

Asked about the impact of several anticipated mega initial public offerings, Solomon said financial markets have sufficient capital to absorb the offerings. "There's enough capital for what we're talking about at this flow at this point," he said.

SpaceX, Elon Musk's rocket and satellite company, is targeting a valuation of $1.75 trillion in its planned IPO, two people familiar with the matter told Reuters.

The listing is expected to be followed by other large offerings, with SpaceX, OpenAI and Anthropic together potentially adding nearly $4 trillion in market value to public markets and increasing competition for investor funds.

Solomon said history suggests periods of strong investor enthusiasm can last for extended stretches. "We are definitely in a moment where there's more greed than there is fear," he said, adding that the current environment presents significant opportunities to invest in emerging technologies.

Solomon also described a recent meeting with New York Mayor Zohran Mamdani as constructive. "I'm hopeful, as the mayor goes from campaigning to governing, that he'll talk about and communicate around and support the business community broadly," he said.