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Blackstone President Jonathan Gray warned that unless Donald Trump can quickly attack trade deals, the US economy faces risks of a recession and will become the newest Wall Street boss to step up pressure on the administration.
Last week, the US president announced a 90-day suspension of sudden “mutual” tariffs the White House imposed on most of its American trading partners, paving the way for negotiations with dozens of countries.
“We expect a slowdown in the economy. How important an economic slowdown is directly correlated with the length of tariff diplomacy,” said Gray, who oversees daily operations in the investment group.
Blackstone’s president added that “the risk of a recession is directly linked to the length of uncertainty,” and said a quick resolution of trade talks is “positive for the economy and the market.”
Trump’s climb comes after aggressive duties unleashed days of market chaos. The US president said more than 70 countries are lined up to negotiate trade deals, and this week he discussed potential deals with Japanese officials.
Comments from Gray came after JPMorgan Chase chief executive Jamie Dimon said he hopes the White House will soon reach an “in principle agreement” with US trading partners.
The stock and bond markets have remained stable since Trump’s “mutual” tariffs were suspended, but the White House has increased China’s obligations and collected a 10% baseline for imports from all countries.
Gray said the market struggle created Blackstone opportunities, which have 1.2 tonnes of 1.2TN in its assets for new investments.
“(You) have to expect us to be in a period of increasing volatility and uncertainty, but in some cases, prices are beginning to reflect that and can create opportunities to invest,” he said.
Blackstone reported first quarter results on Thursday that surpassed Wall Street expectations. Its distributable revenue (metrics analysts support as representing the group’s cash flow) reached between 11% and $1.4 billion.
The company raised $62 billion from investors in the quarter. This was the biggest haul in almost three years, attracting $30 billion in credit and insurance businesses.
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Leading by Chairman and CEO Stephen Schwartzman, Blackstone raised $11 billion for funding from wealthy retail investors. Approximately a quarter of the group’s total assets are managed on behalf of individual investors from almost nothing a decade ago.
This month, Blackstone announced plans with Vanguard and Wellington’s management, investing in public and private assets and creating funds to cater to wealthy investors. Blackstone bets that it will help the cohort accelerate growth in the coming years.
