CEO of Goldman Sachs David Solomon expects the incoming administration to take a more business-like approach, focusing on deregulation.

He believes this will stimulate economic growth and benefit businesses across the country.

During a discussion at the National Retail Federation's (NRF) 2025 Retail Big Show, Solomon said, “the regulatory pendulum has swung very hard over the last 3 or 4 years.” Solomon, for his part, said CEOs were forced to hold back on investments due to regulatory pressures.

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

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

New York investment firm Invesco published a report last month highlighting how it expects a “hyper-deregulation environment” that could spur economic growth.

“Regulatory reforms, particularly reforms that liberalize access to markets, are likely to encourage investment, while tighter regulation of the industry will discourage investment,” the firm wrote. “Furthermore, the environment of deregulation can have a psychological effect, not only in the economy, but also in the markets, revealing the 'animal spirits.'

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

But the Goldman Sachs chief warned that there will be a “cocktail of changes” as the new administration takes over and begins to implement policies, “some of which may be quite constructive and some of which have the potential to slow growth. And I think a lot, What we have to watch very carefully is how everything is balanced.”

FED Chairman JEROME POWELL said the CENTRAL BANK is in no rush to reach a “neutral rate”.

After President-elect Trump's victory in November Goldman Sachs, released a forecast for the U.S. and global economies that highlighted how his administration's planned tax cuts would 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), New York, USA (REUTERS/Andrew Kelly/File Photo/Reuters Images)

Goldman Sachs economists, led by Ian Hatzius, predicted that the US economy would grow by about 2.5% in 2025, based on baseline forecasts. The Trump administration will bring some fresh tax cuts, regulatory easing, reduced immigration, as well as higher tariffs on products from China and imported cars.

Their baseline does not include a 10% tariff on all imported goods or a deportation program that Trump campaigned on — both of which, if implemented, could have the effect of stifling economic growth.

“We think there are some offsetting effects: negative from tariffs and immigration, positive from fiscal policy and regulatory changes; and we get that when we include the offsetting effects in our models, and not a large net effect,” Hatzius said.

FOX Business' Eric Revell contributed to this report.