One billionaire investor is predicting a sharp policy reversal from President Donald Trump's administration after his policies cause shock throughout the economy.
CNBC reported Friday that Steve Cohen — the billionaire hedge fund manager who owns the New York Mets baseball team — is bearish on the economy in the wake of Trump's signature policies. He specifically mentioned Trump's mass deportations of undocumented immigrants, layoffs of thousands of federal workers due to budget cuts and the tariffs he imposed on goods imported from overseas.
"Tariffs cannot be positive, okay? I mean, it’s a tax,” Cohen said during a talk in Miami Beach, Florida. “On top of that, we have slowing immigration, which means the labor force will not grow as rapidly as ... the last five years and so.”
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Cohen, who is ranked by Forbes as the 39th richest person in the United States with a net worth of $21.3 billion, predicted that GDP growth would slow from Trump's policies by anywhere from 1.5% to 2.5% in the latter half of 2025. However, he said that it likely wouldn't be a "disaster" that the U.S. economy would be unable to bounce back from in the future.
"When that money has been coursing through the economy over many years, and now, potentially it will be reduced or stopped in many ways, has got to be negative for the economy," Cohen said. "I think we’re seeing the regime shift a little bit. It may only last a year or so, but it’s definitely a period where I think the best gains have been had and wouldn’t surprise me to see a significant correction."
Cohen's remarks come on the same day that the S&P 500 saw all post-inauguration gains wiped out, according to the New York Times. Even though the index recently hit a record high, investors are wary that corporations will continue to perform at such a high level due to the new economic climate. Additionally, the University of Michigan's consumer sentiment index — which marks how American consumers feel about the economy — hit its lowest point in roughly a year.
The Times reported that consumers are expecting prices for goods to increase by roughly 3.5% annually over the next five to ten years, which would be the highest rate of increase since 1995. The Federal Reserve has also said it's unlikely to lower interest rates throughout the remainder of 2025, unless inflation rates drop back down to its target of 2%.
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Click here to read CNBC's full report, and click here to read the Times' article in full (subscription required).