In an exclusive discussion with CNBC's "Squawk Box" on Tuesday, David Solomon, the CEO of Goldman Sachs, emphasized the importance of the Trump Administration initiating trade agreements to bolster investor confidence. Solomon articulated that establishing a couple of trade deals could provide a clearer framework for investors, helping them comprehend the future direction of U.S. trade policy.

Solomon stated, "It would be good to see a deal or two put forward so there's a construct that people can understand, and people can say, 'OK, so that's what these deals are going to look like, this is a framework that we can start to think about and we can start to plan as we look forward.'" This statement reflects a growing sentiment among investors that clarity in policy is essential for market stability.

As he elaborated on the impact of trade agreements, Solomon noted, "The one thing I know for sure is that if you can create a road map and a clear understanding as to where we're going and what the desired result is, confidence will improve equity market prices." His remarks underline how critical clear communication and defined objectives are in the realm of economics and finance.

Solomon also expressed concern about the short-term reactions of financial markets, which often overreact to immediate changes in macroeconomic conditions, such as President Trump's implementation of "reciprocal" tariffs. He mentioned that without a solid policy framework, the uncertainty surrounding these changes could have lasting effects. "If we don't get to a policy place of certainty, where people can trust and they can rely, it will have longer-term implications," he warned.

He further elaborated that investors are currently grappling with heightened uncertainty regarding economic policies and their implications, stating, "We're in a very different macro environment than we were in just a few months ago." Solomon's repeated use of the terms "certainty" and "uncertainty"more than five times in the interviewillustrates the current climate of apprehension among investors.

As the Trump Administration took office in January, there was a wave of optimism surrounding the potential for deregulation. However, Solomon noted a shift in sentiment as the administration has progressed, saying, "Now we're a few months into the administration, and instead of policy becoming more certain, we actually have a greater sense of uncertainty broadly, and it's having a big impact on asset prices and markets."

He concluded by emphasizing that the markets are currently undergoing a reevaluation of asset values, heavily influenced by the ongoing uncertainty surrounding U.S. economic policies. Solomon stated, "Markets are looking to reprice the value of things based on the uncertainty they have around what these policies will ultimately look like, and how they will ultimately be implemented, and that is therefore causing shifts in fund flows on a very significant basis."

Adding to the economic backdrop, the International Monetary Fund (IMF) released a revised forecast on the same day, slashing its projection for U.S. economic growth in 2017 by 0.9 percentage points, bringing it down to 1.8% from its January forecast. While the IMF does not anticipate a recession in the U.S., it has raised the likelihood of one occurring to 40%, up from 25% in October. The forecast for global growth was also downgraded by 0.5 percentage points, now sitting at 2.8%.