Billionaire & Legendary Investor Steve Cohen Sounds the Alarm on the U.S. Economy — "Pretty Negative for First Time In a While"

Economy

Billionaire & Legendary Investor Steve Cohen Sounds the Alarm on the U.S. Economy — "Pretty Negative for First Time In a While"

Billionaire & Legendary Investor Steve Cohen Sounds the Alarm on the U.S. Economy — "Pretty Negative for First Time In a While"

Speaking at the FII PRIORITY Summit in Miami, Steve Cohen, Chairman & CEO of Point72, warned that U.S. growth is likely to slow from 2.5% to 1.5% in the second half of the year.

He pointed to sticky inflation, slowing growth, and government austerity as the key drivers.

“This is one of those moments where there's really a lot of uncertainty... I have pretty strong views here,” Cohen stated.

Key Takeaways from His Remarks:

1) Tariffs

• Tariffs are a tax and are never a positive for the economy.

• If the U.S. imposes tariffs, others may retaliate and implement reciprocal tariffs.

2) Slowing Immigration

• A decline in immigration means slower labour force growth compared to the past five years.

• Could see a situation where growth is slowing but the unemployment rate also falling because of a slowing labour force.

3) Government Austerity (DOGE)

• DOGE's actions are austerity.

• When that money has been coursing through the economy for many years, if it's reduced or stopped it has to be negative for the economy.

“I’m actually pretty negative for the first time in a while... it's a period where the best gains have been had, and it wouldn't surprise me to see a significant correction.”