The financial market is feeling down again! Gloomy forecasts have hit it hard! According to billionaire Steve Cohen, US economic growth is expected to slow in the second half of 2025.
The businessman’s prediction is based on the potential impact of President Donald Trump’s tariffs, tighter immigration laws, and government spending cuts led by Elon Musk.
As reported by Bloomberg, Steve Cohen, founder of Point72 Asset Management, shared his forecast at the Future Investment Initiative Institute summit in Miami Beach. He pointed to persistent inflation, slowing growth, and the risk of retaliatory tariffs from frustrated trade partners. In his view, these factors could drag down the US economy.
Cohen’s gloomy outlook suggests a slowdown in US economic growth from the current 2.5% to just 1.5%. Previously, he was skeptical about the Government Efficiency Department led by Elon Musk. The billionaire believes that the agency’s extreme cost-cutting approach could hinder economic progress. He suggested that the period of peak growth was already behind us and warned of a possible major market correction.
Cohen also raised concerns about tariffs. “Tariffs cannot be positive, okay? I mean, it's a tax,” he said. He warned that if the US imposes additional tariffs, other countries may respond in kind.
The White House supports the use of tariffs for various goals, from reducing trade imbalances to increasing leverage over other nations. Meanwhile, in February, US business activity slackened to its lowest level since September 2023. This could be explained by a decline in the service sector activity, which happens to be the backbone of the American economy.
