Are Trump's policies dragging the U.S. into a recession? Trump's Old Friend, Billionaire Investor, Announces

Billionaire investor Marc Lasry has expressed concern that the economic uncertainty caused by President Donald Trump's policies, especially tariffs, has halted investment and could push the United States into a recession.

Speaking at the Symposium on Credit Opportunities at New York University on Friday, the Avenue Capital Group co-founder highlighted the risks of unpredictability in the market.

"The problem for markets is when they don't know what to do," Lasry said, adding: "An economy can't survive like that. That would slow everything down and push the economy into a recession."

While acknowledging that the economy remains strong, Lasry emphasized that uncertainty over the direction of the economy could lead more investors to credit markets, as equity returns look increasingly unpredictable. Lasry's comments come at a time when the S&P 500 Index fell for the fourth week in a row, extending its year-to-date losses to about 4.5%. Meanwhile, U.S. investment-grade bond spreads widened to their highest levels since September, pointing to increased credit risk.

Major financial institutions such as Goldman Sachs and Barclays have warned that credit risk will increase.

Lasry has a history of business dealings with Trump, having invested in Trump Entertainment Resorts following his bankruptcy in 2009. Reflecting on his interactions with Trump at the time, Lasry said, "He loves chaos, and the more chaos, the better."