In a recent statement, Blackstone President Jonathan Gray expressed concerns that the United States economy could face a recession unless President Donald Trump swiftly establishes trade agreements. Gray is among the latest senior figures in Wall Street to increase pressure on the current administration, following Trump’s announcement of a 90-day suspension on the reciprocal tariffs imposed on numerous trading partners. This suspension aims to facilitate negotiations with various countries.
Gray, responsible for managing daily operations at Blackstone, remarked that an economic slowdown is expected, with the severity depending on the duration of the ongoing tariff negotiations. He further emphasized that the risk of a recession is closely linked to the period of uncertainty, suggesting that a quick resolution to trade discussions would be beneficial for both the economy and the markets.
This development follows a period of market disturbances instigated by the initial imposition of trade tariffs. President Trump has been negotiating with Japanese officials, among other potential partners, to forge new trade deals. His initiatives have been aimed at establishing more than 70 trade agreements worldwide.
Concurrently, JPMorgan Chase CEO Jamie Dimon expressed his hope for the White House to achieve agreements in principle with the U.S.’s trading partners soon. Since the announcement of the tariff suspension, both stock and bond markets have shown signs of stabilization, despite increased duties on Chinese imports and a maintained baseline 10% levy on imports from other countries.
Gray noted that the fluctuations in the markets have presented investment opportunities for Blackstone, which manages $1.2 trillion in assets. He highlighted that periods of volatility and uncertainty can sometimes lead to favorable pricing for investments.
On the financial front, Blackstone recently reported first-quarter results exceeding Wall Street expectations, with distributable earnings rising 11% to $1.4 billion. The firm attracted $62 billion from investors during this quarter, marking its largest collection in almost three years, with significant contributions from credit and insurance ventures amounting to $30 billion.
Led by Chairman and CEO Stephen Schwarzman, Blackstone also secured $11 billion for its funds from wealthy individual investors. Currently, about a quarter of Blackstone’s total assets are managed on behalf of individual investors, a substantial increase from nearly none a decade ago.
In April, Blackstone announced a collaboration with Vanguard and Wellington Management to create funds targeting affluent investors by investing in a mix of public and private assets, a strategy the firm anticipates will drive growth in the coming years.
