Blackstone Chairman: "A Good Thing for the World"
Former Secretary Mnuchin Says Tariff Policies Are Being Overreacted To
As concerns grow that U.S. President Donald Trump's tariff policies are increasing economic uncertainty, some Wall Street heavyweights have come forward to defend the Trump administration's tariff measures.
Steven Schwarzman, Chairman of Blackstone, sitting side by side with President Donald Trump at a meeting held at the White House. (Photo by EPA Yonhap)
On the 12th (local time), according to the Financial Times (FT), Steven Schwarzman, co-founder and chairman of Blackstone, the world's largest private equity firm, told reporters in India that tariffs would ultimately significantly boost U.S. manufacturing activity.
Schwarzman, who publicly supported and heavily funded President Trump in the last election, said, "Considering the scale of the United States, this will be a good thing for the world."
He added, "If we grow faster, we can consume more. That is one scenario," but also noted, "It is still too early to judge, so there are other scenarios as well."
On the 12th, President Trump ultimately went ahead with imposing a 25% tariff on steel and aluminum worldwide. He also announced reciprocal tariffs to be imposed on April 2. Tariff measures have been extended to China, Canada, and Mexico as well.
David Solomon, CEO of major investment bank Goldman Sachs, said he understands the intent behind the tariff policy but emphasized that the tariff policy needs to be clearer, and that the business community prefers tariff reductions over increases.
In an interview with Fox News, Solomon said, "(The business community) understands what President Trump is trying to achieve with tariffs," but stressed the need for greater certainty, adding, "Anywhere in the world, the business community will always want tariff reductions."
Earlier, on the 10th, Goldman Sachs lowered its forecast for U.S. GDP growth this year from 2.4% at the beginning of the year to 1.7%. This marked the first time in two and a half years that Goldman Sachs issued a forecast below market consensus.
Solomon gave a positive assessment of President Trump's communication efforts. He said, "President Trump is communicating with the business community," and described it as "a different experience compared to the past four years under former President Joe Biden."
He also mentioned that bureaucratic formalism has negatively impacted growth and investment, and that CEOs welcome deregulation efforts. Solomon attended the "Business Roundtable" event hosted by President Trump the previous day.
Former U.S. Treasury Secretary Steven Mnuchin expressed in an interview with CNBC that the market is overreacting to President Donald Trump's tariff policies.
He said, "There are no signs anywhere that the U.S. economy is about to enter a recession," and added, "People are somewhat overreacting to the policy changes following the start of Trump's second term." He disagreed with concerns raised about the potential for inflation resurgence and economic recession due to the Trump administration's tariff policies.
Mnuchin stated, "The current economic outlook does not indicate a recession," and said, "Larry Summers, former Treasury Secretary under the Bill Clinton administration, said the probability of a recession this year is close to 50%, but I do not agree with that at all."
Regarding the recent sharp decline in the U.S. stock market, he interpreted it as "a correction from historically high levels." He cautioned against overinterpreting this adjustment as a sign of an economic crisis, emphasizing that such corrections are natural and healthy.
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