Steve Cohen Warns US Economy Faces Slowdown, Forecasts 1.5% Growth

Billionaire hedge fund manager Steve Cohen has issued warnings about the US economy, citing concerns over punitive tariffs, reduced immigration, and federal spending cuts. Cohen argues that former President Trump's aggressive trade policies, particularly tariffs, could slow US economic growth to 1.5% in the second half of the year, down from an earlier projection of 2.5%. He emphasizes that tariffs function as a tax and, combined with slowing immigration, will likely stunt labor force expansion and economic growth. Cohen suggests that the era of record-high equity markets may be over, as the S&P 500 has already fallen by about 8% this year and is nearing correction territory. These macroeconomic uncertainties have led Cohen to be cautious about the future outlook for US equities, even as he identifies large-cap stocks with significant upside potential among his portfolio holdings.