Trump Speaks to Wall Street

In a Byzantine ballroom in midtown Manhattan, Wall Street’s elite gathered in droves.

Donald Trump’s economic speech drew ardent supporters — the likes of hedge fund manager Scott Bessent, billionaire John Paulson and Cantor Fitzgerald CEO Howard Lutnick. (People whose names have been floated for key posts in a Trump administration). But there were also those who simply wanted a sense of what the next four years could mean for their investing styles.

The Economic Club of New York, which held the event, invited both Trump and Kamala Harris to speak in the wake of their conventions. Trump was quickest to raise his hand.

Opinions were mixed, and not always along party lines. There were some Democrats who quietly said they were impressed with Trump’s proposals, and some Republicans who worried that more Trump tax cuts would further inflate the swollen US deficit. Bessent and Larry Kudlow were said to be among a cadre of Wall Street executives who helped Trump craft his speech, with the final version coming from Trump himself, people familiar with the matter said, asking not to be named discussing private matters.

Of the audience, “The group self-selected, so it had a high bias who were favorably disposed,” ECNY chairman Robert Steel said, adding that of the club’s several thousand members about 650 attended. “Put together in less than a week, that’s pretty impressive.”

The club’s job, according to Steel, is to bring together leaders on economics and politics. “That’s my mission,” he said. “It’s not driven by any philosophical point of view.”

Paulson's View

In the days before Trump’s speech, Harris said she would boost taxes tied to capital gains for people who earn at least, in a plan less aggressive than President Biden’s — while proposing large tax deductions for small businesses to level the playing field. Trump said he would slash the corporate tax rate to 15% for companies that make their products in the US, down from the current 21% rate he put in place during his prior term.

The former president also said he would seek to lower interest rates, which is the Federal Reserve’s job. Many in the crowd had already been anxious that the presidential candidate would toy with an independent central bank if he were to win the office.

On that topic, I spoke to Paulson, known for making massive profits at his hedge fund during the 2008 financial crisis by betting against mortgage bonds.

“Ultimately the decision is up to the Fed, but it’s important for the Fed to hear other viewpoints,” the billionaire said this week in a Bloomberg Television interview directly following Trump’s speech.

When asked what underpinned his faith in Trump, he offered this: “His policies, under his administration, were very successful.”

Paulson said he’s generally not worried about the US deficit under Trump. The potential impact of the tax-cut proposals could be $10.5 trillion over a decade, according to an analysis by Bloomberg.

You can find Paulson’s full interview here , where he also speaks about the possibility of creating a US sovereign wealth fund. It’s an idea he and Trump have spoken about, though the plans are very limited in scope. Call it more of a dream, at this juncture.

Next week, the candidates will face off in a highly anticipated debate that could keep the focus on the political sphere once again. That’s all amid the backdrop of a weakening labor market and a jittery stock market. Much more to look out for as we march toward November.

More to come. Tips, ideas and opinions at [email protected] .