Goldman Sachs CEO warns: The market is too optimistic about a "soft landing" in the United States.

Goldman Sachs CEO David Solomon warned investors not to be overly confident in the Federal Reserve's ability to achieve a "soft landing" for the U.S. economy in the battle against inflation.

According to media reports, Solomon stated at a UBS conference on Tuesday that "the world is moving towards a soft landing," but due to lingering inflation pressures and geopolitical risks, there is "higher uncertainty."

"The market's expectations for an economic soft landing are too high. When you look back at the reality of the past three or four years, I find it hard to believe it will be that simple," Solomon said.

Solomon continued, "A month ago, during a TV interview in Davos, the consensus was for seven rate cuts, and I said, 'Oh my, I really don't understand this.'"

Since then, the market has lowered its expectations, currently anticipating four rate cuts this year instead of six or seven.

Solomon noted that the top half of the U.S. economy has been very strong, but consumer spending among lower-income groups is slowing down. Data released by the World Business Federation on Tuesday showed that the consumer confidence index dropped to 106.7, lower than the revised 110.9 from the previous month and below expectations of a slight increase.

"Some business leaders have told him that with prices still high, 'living paycheck to paycheck' is becoming tighter," Solomon said. "I believe that in the past few months, you have seen these spending patterns tighten, indicating a slightly softer second half of the economy."

Solomon's comments on the economic trajectory are more pessimistic than his remarks made in September last year when he stated that "the likelihood of an economic soft landing has significantly increased."