Bloomberg Talks IBM Vice Chairman Gary Cohn Talks US Economy
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Jan 21, 2025 Gary Cohn, Vice Chairman at IBM and former National Economic Council director under Trump, shares his insights on the US economy. He discusses the political hurdles in implementing tax cuts and the corporate optimism surrounding Trump's policies. Cohn offers a historical lens on the yield curve, explaining its significance for today's economic indicators. The conversation also touches on the pressing issues of national debt and the importance of fiscal responsibility, especially regarding Social Security amid ongoing market uncertainties.
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Tax Bill Challenges
- Focusing on taxes alone will be challenging due to various constituencies and thin margins in the House.
- Certain members prioritize different aspects like deficit reduction, SALT deductions, and Trump tax cuts.
Tariff Considerations
- Tariffs are a complex issue with potential positive and negative consequences, both intended and unintended.
- The new administration is considering various factors in determining tariff policies.
Debt and Deficit Concerns
- The market is showing increasing concern about rising national debt and deficits, especially with the approaching Social Security tipping point.
- This, combined with the need to roll over existing short-term debt, creates significant borrowing needs.