TD Bank’s Solomon: The U.S. economy has been strong in the face of challenges

Summary

Jeffrey Solomon, TD Bank U.S. vice chair, discusses U.S. economic resilience, Treasury market risks, dollar supremacy, and the AI productivity boom on Squawk on the Street. He argues the U.S. economy remains strong despite oil and geopolitical challenges, while low-end consumers face pressure from food and gas prices. He warns that policy volatility and strained foreign relations could push Treasury yields higher and undermine dollar supremacy. He compares the AI boom to the 1990s internet boom and sees AI adoption broadening, with the feared SaaS apocalypse not materializing.

• U.S. economy seen as resilient; unemployment is not an issue.
• Consumer confidence is strong at the middle and high end but weaker at the low end.
• Treasury demand faces risk from policy volatility and strained foreign relations.
• Dollar supremacy underpins the U.S. economy but faces policy-volatility risk.
• AI boom compared to the 1990s internet boom as a large productivity driver.
• AI investment is moving beyond hyperscalers and AI infrastructure into broader adoption.
• The expected SaaS apocalypse has not happened.
• Foreign sovereign moves are viewed as incremental pressure on U.S. rates.