Wall Street outlook sours for global economy
Top Wall Street bankers said they’re pessimistic about the outlook of the global economy next year with elections in the US, monetary policies and escalating Middle East tensions weighing on sentiment.
“If you take the time horizon, the monetary policies that we are going to see will have greater effects on the world, it’s difficult to be optimistic about that,” Bridgewater Associates LP founder Ray Dalio said during a panel on the first day of Saudi Arabia’s Future Investment Initiative. The upcoming US elections will be about irreconcilable differences to do with wealth and power, he added.
Speaking alongside Dalio and JPMorgan & Chase Co. CEO Jamie Dimon, Citigroup Inc.’s Jane Fraser echoed those comments. “We’re sitting here with a backdrop of the terrorist attack in Israel and the events that have unfolded since, and it’s desperately sad,” she said. “So it’s hard not to be a little pessimistic.”
Meanwhile, BlackRock Inc. CEO Larry Fink said the Federal Reserve “is going to have to raise rates higher,” for longer, which means that by 2025 there may be either a soft or hard landing. In 2024, he doesn’t expect either, he said.
“The real issue is how we deal with each other.”
Bridgewater Associates founder Ray Dalio explains why he’s “pessimistic” about the outlook for the global economy.
Follow the latest updates from the Future Investment Initiative in Saudi Arabia: https://t.co/BPbYQEWK9W pic.twitter.com/Pj4LoQgDl3
— Bloomberg Middle East (@middleeast) October 24, 2023
“This reminds me of the 70’s, the 70’s were about bad policy, today it’s about bad policy again, a big macro-shift,” Fink said. Although consumer power in the US is comforting, other parts of the world like in Europe, are facing much more “severe
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