Sternlicht cautions Trump against “overheating economy”

Miami /
Feb.February 17, 2017 11:15 AM

From the New York website: Barry Sternlicht believes President Trump should be concerned about the pace of multiple stimuli, warning that cutting taxes and increasing spending can be a “dangerous game.”

Sternlicht, who heads Connecticut-based fund manager Starwood Capital Group, told Bloomberg that Trump needs to be wary of interest rates jumping too quickly.

“We might go down before we go up in terms of tax receipts, If he cuts corporate taxes and cuts individual taxes,” Sternlicht said. “I guess the hope is the economy accelerates enough that other taxes will replace those tax cuts and we’ll grow. It’s a leap of faith.”

He added that he supports what he calls “re-regulation,” adding the banking industry has been strangled by excessive regulation and that corporate tax cuts will be useful to some extent. However, he warned that Trump should be careful about “overheating” the economy.

“If rates rise too fast, and at the same time you put trade barriers on China and they are angry at us and they don’t buy our debt, rates could spike suddenly — hard,” he said. “That would be bad for the equity markets.”

He welcomes infrastructure spending, but would prefer money to be spent on schools, over a the Wall. [Bloomberg]Miriam Hall


Related Articles

arrow_forward_ios
Don Peebles and Barry Sternlicht with renderings of proposals to develop city-owned property in Miami Beach (Starwood Capital Group, Integra Investments, Comrass Company, Wikipedia, Getty)
Miami Beach gives preliminary OK to controversial Peebles, Sternlicht office projects near Lincoln Road
Miami Beach gives preliminary OK to controversial Peebles, Sternlicht office projects near Lincoln Road
Starwood’s Barry Sternlicht (Getty, iStock)
Starwood’s a “sea of stability,” prepared for a recession, Sternlicht says
Starwood’s a “sea of stability,” prepared for a recession, Sternlicht says
A photo illustration of prominent guests at the Witkoff wedding (via Instagram)
Nuptials Mar-a-Lago style: Donald Trump, Don Peebles, Barry Sternlicht among real estate elite at Witkoff wedding
Nuptials Mar-a-Lago style: Donald Trump, Don Peebles, Barry Sternlicht among real estate elite at Witkoff wedding
Starwood's Barry Sternlicht, Mast Capital's Camilo Miguel Jr. and renderings of The Paragon (Getty, Binyan Studios)
Mast Capital, Starwood launch sales of planned oceanfront condo project in Miami Beach
Mast Capital, Starwood launch sales of planned oceanfront condo project in Miami Beach
From left: Alex Rodriguez and Barry Sternlicht (Getty Images, Starwood Capital Group, iStock)
Starwood, A-Rod and partner buy South Florida single-family rentals to add to portfolio
Starwood, A-Rod and partner buy South Florida single-family rentals to add to portfolio
From left: Steven Levin of Centennial and Barry Sternlicht of Starwood Capital Group (Centennial, Starwood Capital Group, LoopNet)
Barry Sternlicht’s Starwood Capital sells Westland Mall in Hialeah by reassigning $149M loan
Barry Sternlicht’s Starwood Capital sells Westland Mall in Hialeah by reassigning $149M loan
Starwood snaps up Palm Beach County apartment complexes for $176M
Starwood snaps up Palm Beach County apartment complexes for $176M
Starwood snaps up Palm Beach County apartment complexes for $176M
Here are South Florida’s largest multifamily sales of 2021
Here are South Florida’s largest multifamily sales of 2021
Here are South Florida’s largest multifamily sales of 2021
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...