Steve Cohen says that tariffs, dog cuts are negative for economics

Investor of billionaire Steve Cohen doubled his negative view on the American economy due to the background of penalty, immigration repression and federal cuts of expenses directed by the so -called government department.

The chairman and general director of Hedge Fund Point72 said that for the first time in a long time he became Bearish after President Donald Trump's aggressive commercial policy made him worried about inflation pressure and lower consumer expenses. Meanwhile, his difficult position on immigration may mean limited supply of workforce, he said.

“Tariffs cannot be positive, okay? I mean it is a tax, “said Cohen on Friday at the top of FII Priority Summit in Miami Beach, Florida. “In addition, we have a slowdown in immigration, which means that the labor force will not increase as fast as … the last five years and so on.”

The outstanding investor of the Hedge Fund undertook to stab movements that reduce the cost of dog led by Elon Musk, saying that they can only hurt the economy. Musk said his goal was reduce federal expenses by $ 2 trillion.

“When this money went through the economy for many years, and now they are potentially reduced or stopped in many ways, they must be negative for the economy,” said Cohen.

Cohen thinks that retreating on the stock exchange can probably be to give an uncertain macroeconomic environment. He sees the growth of the American economy slowing down to 1.5% from 2.5% in the second half of the year.

“I think we are a bit observing the change of regime. It can only last a year, but it is definitely a period when I think that the best profits have been made and it would not surprise me to see a significant correction, “said Cohen. “I don't think it was a disaster.”