Goldman CEO David Solomon once again warns US inflation will prove sticky - and suggests more Fed rate hikes are coming

• Goldman Sachs CEO David Solomon warned yet again that US inflation will be prove sticker than expected.
• "I sense that it's going to be stickier, it's come off its peak, but it's going to be stickier and more resilient," he said.

While US inflation has fallen from last year's peaks, it still remains more than twice the Federal Reserve's 2% target - and lowering it further could prove challenging, according to Goldman Sachs CEO David Solomon.

And that means interest rates may just have to rise more for price pressures to ease from here, he said.

The annual rate of consumer price increases fell to 4.9% in April from a four-decade high of 9.1% reached in mid-2022. The decline came after the Fed raised interest rates at the fastest pace since the 1980s, lifting its benchmark rate above 5% from near-zero levels in the first quarter of last year.

"There's no question that inflation has come off," Solomon said during CNBC's CEO Council Panel on Tuesday.

"I sense that it's going to be stickier, it's come off its peak, but it's going to be stickier and more resilient which is why we're expecting that while the Fed may pause and will be data dependent, you might need to see higher rates to ultimately control it some more," he said.

Sticky inflation refers to a market condition where prices remain resistant to change.

Despite the slowdown in prices, wage and salary growth has stayed robust in the world's largest economy, recent data show.

The Goldman chief has previously warned of stubborn inflation, saying it could be hard to control. On a bullish note, however, Solomon suggested in a separate interview that the threat of a serious recession has receded.