Goldman Sachs CEO: Anticipates that the Federal Reserve will not cut interest rates this year, and is prepared to deal with more severe inflation

Goldman Sachs CEO David Solomon said at an event at Boston College on Wednesday, "I still stick to the expectation of zero interest rate cuts this year. I think we are ready to deal with more severe inflation."

The Goldman Sachs CEO also said he expects the European Central Bank will cut interest rates this year as the eurozone is struggling to cope with a "more sluggish economy".

It was reported that minutes from the Federal Reserve's policy meeting from April 30th to May 1st showed that rate setters believe it may take longer than previously thought for inflation to ease. Traders subsequently reduced their bets on more than one Fed rate cut this year.