Key figures in the U.S. financial sector, including Citigroup CEO Jane Fraser, expressed concerns about the tariff policies of the Donald Trump administration at the annual economic event, the "Milken Conference 2025," held in Los Angeles (LA).
On May 5 (local time), Jane Fraser, CEO of Citigroup, attended the event at the Beverly Hilton Hotel in LA and, in an interview with Bloomberg TV, predicted that the Trump administration's final decision on tariff rates would determine the ripple effects on the economy.
Fraser emphasized, "A 10% tariff would be easier to absorb," adding, "If the tariff rate exceeds 25%, it will cause a much greater real impact."
Regarding the Federal Reserve's interest rate policy, she said, "The Fed is currently in a very difficult position due to the mismatch between hard data and soft data," and predicted that the Trump administration's final tariff rate would be a decisive factor influencing the Fed's decisions.
During an official conference discussion, Fraser also stated, "What we are hearing from clients is that they are preparing for headwinds," explaining that companies are either accelerating or delaying spending, with everyone watching to see how the Trump administration's tariff policy will unfold.
Harvey Schwartz, CEO of investment firm Carlyle, also pointed out that the U.S.-China trade war has emerged as a major concern for the global economy, saying, "At the beginning of this year, there was very high anticipation and (investment) momentum, and everything was growth-oriented. However, the abrupt changes in tariff policies have caused confusion among people."
Marc Rowan, CEO of asset management firm Apollo Global Management, also addressed the possibility of a recession due to tariff policies in an interview with Bloomberg, stating, "If we are unable to resolve this uncertainty, it could lead to two consecutive quarters of negative growth."
Rowan further added, "We have damaged America's brand of stability, predictability, and rule-based order," and commented, "We are witnessing a shift from transcendental exceptionalism to merely being exceptional."
However, some in the investment industry believe that the current situation could present good investment opportunities.
Carlyle's CEO Schwartz remarked, "The risk premium has definitely increased, but people still want to participate (in investments)," adding, "They are actively seeking opportunities."
Michael Gusse, Chief Investment Officer (CIO) of Fixed Income at Principal Asset Management, predicted that while uncertainty could trigger a recession, economic growth could ultimately become stronger.
He said, "If we get through this without additional friction, I believe we are in an environment where we could actually see a reacceleration of growth in the latter part of this year and into 2026."
George Roberts, co-founder of investment firm KKR, quoted the famous British phrase "Stay calm and carry on," expressing optimism that trade negotiations would eventually be achieved.
Bill Ackman, billionaire hedge fund manager on Wall Street, described President Trump as "ultimately a negotiator," but also urged that tariffs on China should be suspended for 180 days for the time being.
The Milken Conference is an annual event organized since 1998 by the Milken Institute, an economic think tank founded by renowned American investor Michael Milken. This year, as concerns over tariff policies grew across the global economy, approximately 5,000 people attended the event.
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