Steve Cohen says tariffs and DOGE's cuts are negative for economy, market correction could be soon

Published On Feb 21, 2025, 2:39 PM

Steve Cohen, the CEO of hedge fund Point72, has expressed a bearish outlook on the U.S. economy citing concerns over increasing tariffs, immigration policies, and federal spending cuts. He believes these policies could lead to inflationary pressures and a slowdown in consumer spending. He anticipates a potential correction in the equity markets as the economy is projected to grow at a slower rate of 1.5% compared to 2.5%. He does not foresee a major disaster but indicates that market gains may have peaked, making a correction likely.