CEO of Goldman Sachs David Solomon hopes the incoming administration will take a more pro-business approach, shifting the focus to deregulation.

It is a measure that, according to him, will stimulate economic growth and benefit businesses throughout the country.

During a discussion at the National Retail Federation (NRF) 2025 Retail’s Big Show, Solomon said the “regulatory pendulum had swung very hard over the last 3-4 years.” In turn, CEOs were forced to hold back on investments because of regulatory pressure, Solomon said.

“This administration has sent a clear message that they want to swing that pendulum back,” said Matt Shay, CEO of Solomotold NRF. “This is very constructive for growth and investment.”

WALMART CEO DOUG MCMILLON MEET WITH TRUMP ON TRADE RELATIONS, INVEST IN US

Solomon went on to say that “the tone of deregulation is a very powerful catalyst for investment.”

New York investment firm Invesco released a report last month that also highlighted how it foresees a “hyper-deregulation environment,” which could boost economic growth.

“Regulatory reforms, particularly those that liberalize market entry, are likely to stimulate investment, while tighter regulation of the industry deters investment,” the firm wrote. “Furthermore, an environment of deregulation could have a psychological impact, unleashing ‘animal spirits’ not only in the economy but in the markets.

David Solomon, CEO of Goldman Sachs Group Inc., during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, U.S., on Tuesday, Dec. 6, 2022. (Michael Nagle/Bloomberg via Getty Images/Getty Images)

But Goldman Sachs’ top boss warned there will be a “cocktail of change” as the new administration takes over and begins implementing policies, “some of which may be quite constructive, some of which have the potential of slowing growth. I think what we have to watch very, very carefully is how everything is balanced.”

JEROME POWELL SAYS CENTRAL BANK IN NO WAY TO ACHIEVE ‘NEUTRAL RATE’

After President-elect Trump’s victory in November, Goldman Sachs, had released a forecast for the U.S. and global economies, underscoring how his administration’s planned tax cuts will boost growth, though more aggressive tariffs could dampen that impact.

The Goldman Sachs logo is seen on the trading floor of the New York Stock Exchange (NYSE) in New York City, New York, USA (REUTERS/Andrew Kelly/File Photo/Reuters Photos)

Goldman Sachs economists led by Jan Hatzius projected that the US economy should grow by around 2.5% in 2025 based on their baseline projection, assuming the second Trump administration it will bring further tax cuts, regulatory easing, reduced immigration, as well as higher tariffs on Chinese goods and imported automobiles.

His base case does not include a blanket 10 percent tariff on all imported goods, which Trump campaigned on, or a deportation program, both of which could have the effect of suppressing economic growth if implemented.

“We think there are some offsetting effects — negative from tariffs and immigration, positive from fiscal policy and regulatory changes — and when we put that into our models we have offsetting effects and not a big net effect,” Hatzius said earlier.

Eric Revell of FOX Business contributed to this report.