MILITARY + MARKETS
Trump fired
the chairman of the Joint Chiefs of Staff, Charles Q. Brown, as part of a
broader shakeup of top military officers.
Related
G-20 Puts on Show of Unity Amid Trump’s Assault on Global Order
Hard-to-Shock Markets Show Tolerance for Trouble Isn’t Limitless
Steve Cohen says tariffs and DOGE’s cuts are negative for economy, market correction could be soon
Key Points
- The chairman and CEO of hedge fund Point72 said he turned bearish for the first time in a while after President Donald Trump’s aggressive trade policy made him worry about inflationary pressures and lower consumer spending.
- “Tariffs cannot be positive, okay? I mean, it’s a tax,” Cohen said Friday at the FII Priority Summit in Miami Beach, Florida.
Billionaire
investor Steve Cohen doubled down on his negative view of the U.S.
economy due to a backdrop of punitive tariffs, immigration crackdown and
federal spending cuts spearheaded by the so-called Department of
Government Efficiency.The chairman and CEO of hedge fund Point72 said he turned bearish for the first time in a while after President Donald Trump’s
aggressive trade policy made him worry about inflationary pressures and
lower consumer spending. Meanwhile, his tough stance on immigration
could mean a constrained supply of labor, he said.
“Tariffs cannot be positive, okay? I mean, it’s a tax,” Cohen said Friday at the FII Priority Summit in Miami Beach, Florida. “On top of that, we have slowing immigration, which means the labor force will not grow as rapidly as … the last five years and so.”
The prominent hedge fund investor took a stab at DOGE’s cost-cutting moves led by Elon Musk, saying they could only hurt the economy more. Musk has said his goal is to cut federal spending by $2 trillion.
- “When that money has been coursing through the economy over many years, and now, potentially it will be reduced or stopped in many ways, has got to be negative for the economy,” Cohen said.
Cohen believes a
pullback in the stock market could be likely given the uncertain
macroeconomic environment.
- He sees the U.S. economy’s growth slowing down to 1.5% from 2.5% in the second half of the year.
“I think
we’re seeing the regime shift a little bit. It may only last a year or
so, but it’s definitely a period where I think the best gains have been
had and wouldn’t surprise me to see a significant correction,” Cohen
said. “I don’t think it’s going to be a disaster.
No comments:
Post a Comment