Solomon "Pro-Growth Agenda Operation... Deregulation Expected"
Fraser "Bright Outlook for US Economy Next Year"
High Expectations for Trump 2nd Term Treasury Vicente
Executives from major global financial firms expressed optimism about the U.S. economic outlook following the inauguration of President-elect Donald Trump in January next year. They believed that the tariff threats posed by Trump, which raised concerns about rising inflation and hampering growth rates, would be sufficiently manageable. In particular, they forecast that the financial markets would also experience a boom due to his pro-business and pro-growth policies.
David Solomon, CEO of Goldman Sachs, attended a Reuters event on the 10th (local time) and said about Trump's second term, "I am optimistic that this administration will pursue a very growth-friendly agenda."
He anticipated that regulatory hurdles would be lowered due to Trump’s pro-business and pro-growth policies. This would lead to rising asset prices and increased trading activity in capital markets, which he expected would rapidly expand Goldman Sachs’ business as well.
Jane Fraser, CEO of Citigroup, at an event hosted by Bloomberg on the same day, spoke about the global economy next year, saying, "The bright spot is the United States," and added, "Many paths lead here (to the U.S.), and the fantastic entrepreneurial spirit makes this country incredibly remarkable."
There was also a forecast that Trump’s second term would use tariffs as a negotiating tool rather than fully implementing them, which could trigger inflation concerns. Previously, Trump had announced plans to impose a universal tariff of 10-20% on all imports worldwide and a 60% tariff on imports from China.
Paula Volent, Chief Investment Officer (CIO) managing a $2.5 billion fund at Rockefeller University, said, "The new administration will probably use tariffs as a bargaining chip," and predicted, "The side effects (from tariffs) will not be as bad as many people fear."
There was also significant anticipation regarding hedge fund billionaire Scott Bessent, CEO of Key Square Group, who was nominated as Treasury Secretary for Trump’s second term. CEO Solomon said, "Scott has excellent insight into the market and capital flows," and added, "We are very, very pleased to be working with the new economic team."
Expectations also arose that capital market transactions such as mergers and acquisitions (M&A) and initial public offerings (IPO), which had been subdued in recent years, would revive. Christina Miniss, Global Head of Credit Finance at Goldman Sachs Group, said, "We expect transaction activity in the capital markets, which had been quiet in recent years, to recover after the Trump administration takes office," and added, "Inquiries about what will happen after the election have increased."
Bloomberg News forecasted, "Trump’s agenda will not damage the global economy next year," and stated, "Promises to overturn existing conventions on trade, debt, and security will not be realized overnight." The news agency added, "There is hope among investors for rational voices like Bessent in the administration, and hope that if policies stray too far off track, they can be stopped," and predicted, "If Trump imposes a 60% tariff on China and embarks on massive tax cuts causing the S&P 500 to plummet and Treasury yields to surge, he will not be able to implement these policies."
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