'Not your grandmother's economy' — Cantor CEO Howard Lutnick says growth still has 2 years to run

'Not your grandmother's economy' — Cantor CEO Howard Lutnick says growth still has 2 years to run

The U.S. economy “feels good” and shows no sign of a recession in the next 12 months, Howard Lutnick, chairman and CEO of financial services company Cantor Fitzgerald, told CNBC on Monday.

Jerome Powell said central bankers “will be patient” on rates given continued muted inflation.

Powell has “one in him” as far as rate hikes are concerned this year, said Lutnick, also chairman and CEO of BGC Partners, a brokerage that was spun off from Cantor in 2004. He added that Powell “will wait a little bit longer because the economy is bumpy” to pull the trigger again.

Still, Lutnick sees sustained economic growth in the mid-2 percent range going forward after a stronger 2018 for gross domestic product, including advances of 2.2 percent in the first quarter, 4.2 percent in the second quarter, 3.4 percent in the third quarter, and estimates of around 3 percent for the fourth quarter.

Meanwhile, the cut in the corporate tax rate from 35 percent to 21 percent will give a lasting boost to the economy, Lutnick said. “You have like trillions of dollars in Europe, forced to be in Europe … you think it’s all back? There’s not a chance it’s all back.” There’s been a debate on whether companies that have brought money back have used it to invest in their businesses or whether they’ve sought to boost their stocks through share buybacks.

Lutnick is known for rebuilding Cantor after the Sept. 11, 2001, World Trade Center terrorist attacks. The company lost more than two-thirds of its then-960 New York-based employees, including Lutnick’s brother. Cantor and its affiliates now have more than 4,000 employees in New York and more than 10,000 globally.

Published at Mon, 14 Jan 2019 16:48:00 +0000

Be the first to comment

Leave a Reply

Your email address will not be published.


*