BlackRock Co-Founder: If Trump is elected President of the United States, it will pose a risk to US stocks

BlackRock co-founder Ralph Schlosstein said that if Donald Trump is elected President of the United States, it will pose a risk to the U.S. stock market. However, he believes that the possibility of an economic recession next year is small. As long as the economy and corporate profits remain in good shape, the U.S. stock market will continue to rise, and the first rate cut by the Federal Reserve will also stimulate the stock market. He mentioned that Trump had proposed imposing a 10% tariff on imported products from other countries, which could raise inflation and hit the stock market. Although the Federal Reserve is unlikely to directly respond to Trump's tariffs by raising interest rates, if inflation eventually surges, the possibility of a rate hike cannot be ruled out. Schlosstein stated that U.S. fiscal policy is not sustainable, and currently neither party seems to be particularly concerned about this issue. In particular, Trump's proposed tax cuts will increase the deficit, believing that a global trade war or a weakening dollar, as well as the possibility of foreign investors withdrawing from U.S. bonds, could trigger another downgrade of the U.S. sovereign rating, leading to a dire situation and putting pressure on financial markets