Point72 Chairman and CEO Steve Cohen will speak to CNBC on April 3, 2024.
CNBC
Billionaire investor Steve Cohen doubles negative views on the US economy as he faces punitive tariffs, immigration crackdowns and so-called sector-led federal spending cuts in government efficiency I’ve done it.
The chairman and CEO of hedge fund Point72 said that it only took a while to be bearish after President Donald Trump’s aggressive trade policy worried about inflationary pressures and declining consumer spending. Meanwhile, his strict attitude towards immigration could mean a restricted supply of labor, he said.
“The tariffs aren’t positive, are you okay? I mean, it’s a tax,” Cohen said Friday at the FII Priority Summit in Miami Beach, Florida. “Add to that, we’re slowing down immigration. This means our workforce hasn’t grown as fast as the last five years.”
Prominent hedge fund investors stabbed Doge’s cost-cutting move, led by Elon Musk. Musk says his goal is to cut federal spending by $2 trillion.
“When that money has been running through the economy for years, and now when it can drop or halt in many ways, it has to be negative for the economy,” Cohen said.
Cohen thinks this is probably possible given the uncertain macroeconomic environment in which pullbacks in the stock market are uncertain. He believes that the growth of the US economy is slowing from 2.5% in the second half of the year to 1.5%.
“I think we’re seeing the administration change a little. It may last for about a year, but it’s definitely a time when you think you’ve made the best profits and it’s a surprise to see the important revisions It won’t be,” Cohen said. “I don’t think it’s going to be a disaster.”
