Billionaire Steve Cohen Warns of Economic Slowdown and Market Correction

The hedge fund manager cites tariffs, reduced immigration, and federal spending cuts as key risks to U.S. growth.

Steve Cohen, founder of Point72 Asset Management, predicts slower U.S. economic growth and a potential market correction in 2025.
He attributes his negative outlook to President Trump's tariff policies, which he describes as a tax likely to invite retaliatory measures from trading partners.
Cohen also highlights reduced immigration as a factor constraining labor force growth and economic momentum.
Elon Musk's Department of Government Efficiency, focused on cutting federal spending by $2 trillion, is described by Cohen as an austerity measure that could negatively impact the economy.
Economic growth is projected to slow from 2.5% to 1.5% in the second half of the year, with Cohen emphasizing uncertainty and potential volatility in financial markets.