Goldman Sachs CEO David Solomon suggested there is no urgent need for the Federal Reserve to slash interest rates, taking a different stance from the Trump administration’s calls for looser policy.

“It just doesn’t feel to me like the policy rate is extraordinarily restrictive when you look at risk appetite,” he said at a Barclays financial-services conference, noting that market enthusiasm remains “at the exuberant end of the spectrum.”

Solomon described the environment as mostly constructive, though he cautioned that “trade policy has been a headwind to growth” and that “uncertainty has slowed investment.” He added there are a “handful of constructive forces against some headwind, some uncertainty.”

Earlier:

Solomon’s remarks reinforce the idea that the Fed may not rush to cut rates, tempering dovish market bets. This stance could lend some near-term support to the USD and limit Treasury rally momentum. His warning on trade-policy headwinds, however, underscores risks to growth that may weigh on equities sensitive to global trade.