As Americans express concerns about the economy ahead of the presidential election, Steve Schwarzman, CEO of Blackstone Inc. BX, has assured that the U.S. will avoid a recession, regardless of whether Donald Trump or Kamala Harris wins.
What Happened: During an interview in Tokyo, Steve Schwarzman expressed confidence that the U.S. economy will sidestep a recession, irrespective of the presidential election’s outcome. According to a report by Bloomberg on Wednesday, Schwarzman believes both candidates have proposed policies that could bolster economic growth.
He stated, “I don't see a recession risk because the economy is pretty strong and both of the candidates keep mentioning a lot of stimulative policies.”
However, he noted that the actual implementation of these policies remains uncertain.
With the U.S. election just two weeks away, the outcome 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‘s affordable housing initiatives on businesses, including Blackstone.
See Also: Why US Index Futures Are Mostly Higher On Monday.
Schwarzman also emphasized the role of interest rates in dealmaking, predicting continued rate declines in the U.S., which he believes will encourage more transactions.
Why It Matters: Schwarzman’s comments come only days after a CBS poll revealed that only 1 in 10 Americans rate the economy as “very good,” with about 52% of the polled Americans describing being in a worse state than they were four years ago.
Kathy Bostjancic, chief economist at Nationwide, described that consumer sentiment about economic conditions and future prospects remain pessimistic despite positive economic data that suggest a resilient job market and an overall strong economy.
A recent Reuters/Ipsos poll also shows that concerns about the cost of living and economic policies are top issues for voters. While Harris is leading Trump, as per the same poll, by a narrow margin, voters favor 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’s proposals. The survey conducted in early October indicated that a majority of economists expect inflation, interest rates, and deficits to rise more under Trump than Harris.
Price Action: At the time of writing, SPDR S&P 500 ETF Trust SPY was down by 0.19% while Invesco QQQ Trust, Series 1 QQQ was trading 0.28% lower, as per Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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