NEW YORK (Reuters), John Waldron, Chief Operating Officer at Goldman Sachs said Wednesday that inflation was the biggest risk to the stock market and the global economy.

Inflation “is the biggest risk right now, both in terms of its short-term impact on recovery and in the long-term effect it has in relation to emerging markets,” he stated in an interview held virtual by the Institute of International Finance.

Waldron spoke out about the impact of the pandemic on Goldman Sachs’ business strategy and operations. He said that the bank is adjusting its real-estate footprint to less focus on New York, London, and Hong Kong.

He said, “If we look at our footprint now, it’s more distributed, and in five to ten years it will be even further distributed.”

He said, “We will have more people in other places in the United States as well as other European and Asian cities and they will be less concentrated.”