Steve Schwarzman’s statements underscore the economic uncertainty in the US ahead of the presidential election, where the policies of both candidates could have a significant impact on growth and perceptions of the economy.
The CEO of Blackstone assures that the US will avoid a recession.
As Americans express concern about the economy ahead of the presidential election, Blackstone Inc CEO Steve Schwarzman said the US will avoid a recession, regardless of whether Donald Trump or Kamala Harris win.
During an interview in Tokyo, Steve Schwarzman expressed confidence that the US economy will avoid a recession, regardless of the outcome of the presidential election. According to a Bloomberg report published Wednesday, Schwarzman believes both candidates have proposed policies that could boost economic growth.
He stated: “I don’t see a risk of recession because the economy is quite strong and both candidates continue to mention many stimulating policies”. However, he noted that the actual implementation of these policies remains uncertain.
Elections in the USA
With the US elections just two weeks away, the result is expected to have a significant impact on global markets. Schwarzman, who reportedly contributed to Donald Trump’s campaign in May, highlighted the potential effects of proposed policies, such as Trump’s tariffs and Kamala Harris’ affordable housing initiatives, on businesses, including Blackstone.
Schwarzman also emphasized the role of interest rates in transactions, predicting continued declines in rates in the US, which he said will encourage more transactions.
Schwarzman’s comments come just days after a CBS poll revealed that only 1 in 10 Americans rate the economy as “very good,” with about 52% of respondents describing their situation as worse than four years ago.
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Kathy Bostjancic, chief economist at Nationwide, described consumer sentiment about economic conditions and future prospects as remaining pessimistic despite positive economic data suggesting a resilient labor market and an overall strong economy.
A recent Reuters/Ipsos poll also shows that concerns about the cost of living and economic policies are the top issues for voters. While Harris leads Trump, according to the same poll, by a narrow margin, voters prefer Trump’s stance on the economy and immigration.
Meanwhile, economists predict that Trump’s economic policies could lead to higher inflation and deficits compared to Harris’ proposals. The poll conducted in early October indicated that a majority of economists expect inflation, interest rates and deficits to rise more under Trump than under Harris.
Source: Ambito
