Vice President Kamala Harris’ presidential campaign is gaining support from some key figures on Wall Street, including former American Express CEO Ken Chenault, Blackstone president Jonathan Gray, and Avenue Capital Group CEO Marc Lasry. Harris’s policies are focused on addressing the country’s affordability crisis, with plans to make big-ticket expenses more affordable through tax relief for middle-class and lower-income Americans. Her proposed policies could potentially lead to increased demand for goods and services, which may result in inflation. Harris is also advocating for a corporate tax rate hike to 28% from the current 21% to help fund her campaign promises, a move that has faced criticism from some investors.
The support for Harris from some Wall Street executives is seen as a result of her more moderate approach compared to Biden’s administration. Harris has a history of working with businesses as California attorney general and senator, which has resonated with some executives in the financial industry. However, there are some investors who still favor Trump’s promises of tax cuts and tariffs, as they believe it could spur economic growth. The difference in views on economic policies between Harris and Trump is leading to a divide among Wall Street investors in terms of who to support for the next presidential election.
Investors are also closely watching the candidates’ attitudes towards the Federal Reserve’s independence, a key issue for Wall Street. Trump has previously tried to influence the Fed’s decisions, while Harris has vowed to keep her input out of monetary policy matters. Maintaining the Fed’s autonomy is crucial for investors, as any explicit influence by the president could undermine the central bank’s credibility and ability to fulfill its mandate of price stability and maximum employment. Wall Street is wary of Trump’s unpredictable nature and his history of attacking iconic American companies, which could create turmoil in financial markets.
Harris’s relationships with business leaders, such as Lazard President Ray McGuire and Centerview Partners co-founder Blair Effron, are expected to play a role in her campaign. She has engaged in conversations with prominent figures in the finance industry, including JPMorgan Chase CEO Jamie Dimon. However, Dimon has not publicly endorsed any candidate, indicating a sense of neutrality in his interactions with political figures. Harris’s previous actions as California attorney general, where she took on big banks after the housing crisis, have shaped her reputation with Wall Street titans. Despite some tensions in the past, Harris continues to build connections within the business community as she navigates her presidential campaign.
