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Goldman CEO warns against getting overly confident of US ‘soft landing’

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Goldman CEO warns against getting overly confident of US ‘soft landing’

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Goldman Sachs chief executive David Solomon has warned investors not to get too confident that the Federal Reserve can engineer a “soft landing” for the US economy in its battle to tame inflation. 

Speaking at an industry conference organised by UBS on Tuesday, Solomon said “the world is set up for a soft landing”, but there was a “higher level uncertainty” due to remaining inflationary pressure in the economy and geopolitical risks. 

“The market is way weighted to a very soft landing. And when you look at the pattern of facts the last three or four years, it’s hard for me to see it’s going to be that simple,” Solomon said.

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Solomon’s comments reflect worries that financial markets have been overly optimistic in their predictions for what the Fed will do and their conviction that the central bank will not tip the US economy into a recession. This has so far been avoided and unemployment has remained low even as the Fed lifted interest rates from near zero to the current 22-year high of 5.25 per cent to 5.5 per cent. 

“When I was on TV in Davos a month ago, the consensus was for seven interest rate cuts and I said, ‘Gee, I just don’t understand this,’” Solomon said. 

Markets have since pared back their expectations and are now pricing in four cuts this year, rather than six or seven. 

Solomon said the “upper half of the economy in the United States has been very strong” but that consumer spending in the lower tier of the economy has been slowing. The consumer confidence index, tracked by the Conference Board, unexpectedly fell in February to 106.7 from a revised 110.9 in January, missing expectations for a slight increase. 

“I’ve talked to a bunch of CEOs that operate businesses that would have good insight into what I’ll call more paycheque-to-paycheque kind of spending behaviour,” Solomon said. “I think that in the last few months you’ve seen a pattern of those behaviours tightening up, which means that the lower part of the economy is a little bit softer.” 

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Solomon’s comments on the trajectory of the economy are more bearish than remarks he has made as recently as September, when he said that “the chances of a soft landing now are materially higher”. 

Additional reporting by Kate Duguid

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Video: F.A.A. Ignored Safety Concerns Prior to Collision Over Potomac, N.T.S.B. Says

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Video: F.A.A. Ignored Safety Concerns Prior to Collision Over Potomac, N.T.S.B. Says

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F.A.A. Ignored Safety Concerns Prior to Collision Over Potomac, N.T.S.B. Says

The National Transportation Safety Board said that a “multitude of errors” led to the collision between a military helicopter and a commercial jet, killing 67 people last January.

“I imagine there will be some difficult moments today for all of us as we try to provide answers to how a multitude of errors led to this tragedy.” “We have an entire tower who took it upon themselves to try to raise concerns over and over and over and over again, only to get squashed by management and everybody above them within F.A.A. Were they set up for failure?” “They were not adequately prepared to do the jobs they were assigned to do.”

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The National Transportation Safety Board said that a “multitude of errors” led to the collision between a military helicopter and a commercial jet, killing 67 people last January.

By Meg Felling

January 27, 2026

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Families of killed men file first U.S. federal lawsuit over drug boat strikes

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Families of killed men file first U.S. federal lawsuit over drug boat strikes

President Trump speaks as U.S. Secretary of Defense Pete Hegseth looks on during a meeting of his Cabinet at the White House in December 2025.

Chip Somodevilla/Getty Images


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Chip Somodevilla/Getty Images

Relatives of two Trinidadian men killed in an airstrike last October are suing the U.S. government for wrongful death and for carrying out extrajudicial killings.

The case, filed in Massachusetts, is the first lawsuit over the strikes to land in a U.S. federal court since the Trump administration launched a campaign to target vessels off the coast of Venezuela. The American government has carried out three dozen such strikes since September, killing more than 100 people.

Among them are Chad Joseph, 26, and Rishi Samaroo, 41, who relatives say died in what President Trump described as “a lethal kinetic strike” on Oct. 14, 2025. The president posted a short video that day on social media that shows a missile targeting a ship, which erupts in flame.

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“This is killing for sport, it’s killing for theater and it’s utterly lawless,” said Baher Azmy, legal director of the Center for Constitutional Rights. “We need a court of law to rein in this administration and provide some accountability to the families.”

The White House and Pentagon justify the strikes as part of a broader push to stop the flow of illegal drugs into the U.S. The Pentagon declined to comment on the lawsuit, saying it doesn’t comment on ongoing litigation.

But the new lawsuit described Joseph and Samaroo as fishermen doing farm work in Venezuela, with no ties to the drug trade. Court papers said they were headed home to family members when the strike occurred and now are presumed dead.

Neither man “presented a concrete, specific, and imminent threat of death or serious physical injury to the United States or anyone at all, and means other than lethal force could have reasonably been employed to neutralize any lesser threat,” according to the lawsuit.

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Lenore Burnley, the mother of Chad Joseph, and Sallycar Korasingh, the sister of Rishi Samaroo, are the plaintiffs in the case.

Their court papers allege violations of the Death on the High Seas Act, a 1920 law that makes the U.S. government liable if its agents engage in negligence that results in wrongful death more than 3 miles off American shores. A second claim alleges violations of the Alien Tort Statute, which allows foreign citizens to sue over human rights violations such as deaths that occurred outside an armed conflict, with no judicial process.

The American Civil Liberties Union, the Center for Constitutional Rights, and Jonathan Hafetz at Seton Hall University School of Law are representing the plaintiffs.

“In seeking justice for the senseless killing of their loved ones, our clients are bravely demanding accountability for their devastating losses and standing up against the administration’s assault on the rule of law,” said Brett Max Kaufman, senior counsel at the ACLU.

U.S. lawmakers have raised questions about the legal basis for the strikes for months but the administration has persisted.

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—NPR’s Quil Lawrence contributed to this report.

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Video: New Video Analysis Reveals Flawed and Fatal Decisions in Shooting of Pretti

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Video: New Video Analysis Reveals Flawed and Fatal Decisions in Shooting of Pretti

new video loaded: New Video Analysis Reveals Flawed and Fatal Decisions in Shooting of Pretti

A frame-by-frame assessment of actions by Alex Pretti and the two officers who fired 10 times shows how lethal force came to be used against a target who didn’t pose a threat.

By Devon Lum, Haley Willis, Alexander Cardia, Dmitriy Khavin and Ainara Tiefenthäler

January 26, 2026

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