Goldman Sachs’ chief economist Jan Hatzius has come under fire from former President Donald Trump after releasing a report warning that American consumers will bear the brunt of the economic fallout from Trump’s proposed tariff increases. Hatzius, a prominent voice on Wall Street and a longtime figure in economic forecasting, has often supported government spending initiatives under Democratic administrations—an approach that some conservatives argue reflects a left-leaning bias.
Hatzius, who joined Goldman Sachs in 1997, has built a reputation as one of the few economists who accurately foresaw the housing market collapse that triggered the 2008 financial crisis. However, his more recent advocacy for active government intervention in the economy and support for quantitative easing and federal spending under Presidents Barack Obama and Joe Biden has attracted criticism from right-leaning analysts.
Trump responded to Hatzius’ latest research note on tariffs with a sharp rebuke on social media, criticizing Goldman Sachs CEO David Solomon and suggesting the firm should reconsider its top economist. “David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ and not bother running a major Financial Institution,” Trump wrote on Truth Social.
While the economic view that tariffs can lead to higher consumer prices is widely accepted among economists, critics argue that Hatzius often aligns with progressive fiscal policies. During the 2024 presidential campaign, Hatzius publicly stated that then-candidate Kamala Harris’s economic agenda—which included policies such as grocery price controls, higher taxes, and increased government regulation—was more favorable overall than Trump’s platform, which focused on tax cuts, deregulation, and tariffs.
Some economists have accused Hatzius of being overly partisan. “He’s way to the left in his understanding of the economy,” said one economist familiar with Hatzius’ work, who requested anonymity. “He’s much like a career Fed staffer—only more ideological.”
Hatzius has also been involved in political contributions, with campaign finance records showing he donated $2,300 to Barack Obama’s 2008 presidential campaign, and $1,000 to the Democratic Party in 2004. In 2012, Fortune dubbed him “Obama’s Best Friend at Goldman Sachs” for his support of the then-president’s economic policies.
Though some of Hatzius’ economic forecasts have proven accurate, critics argue he failed to raise sufficient concerns about the inflationary risks tied to Biden-era spending—risks that eventually materialized. His continued advocacy for the Federal Reserve to take an active role in managing the economy, rather than focusing narrowly on inflation control, remains a point of contention.
Goldman Sachs has not publicly commented on Trump’s remarks or the controversy surrounding Hatzius’ economic outlook.
