**Wall Street Leaders Voice Inflation Concerns at Saudi Investment Event**

Top finance executives expressed deep concerns about persistent inflation and its long-term impact on the global economy during the Future Investment Initiative in Saudi Arabia. Addressing attendees, BlackRock CEO Larry Fink highlighted the unprecedented level of embedded inflation and questioned, "At what cost?"

The dominant theme among the Wall Street figures present extended beyond election predictions for 2025. Citadel CEO Ken Griffin described the U.S. presidential race as nearly a "coin toss," though he believed Donald Trump holds a slight edge. Blackstone's Stephen Schwarzman acknowledged Trump's improved understanding of the presidential role but refrained from making firm predictions. Apollo CEO Marc Rowan speculated that a Trump victory might spur increased mergers and acquisitions.

Economists and financial leaders alike were more focused on inflation concerns than interest rate forecasts. Despite traders' expectations that the Federal Reserve might reduce rates by another 25 basis points next week and again in December, none of the finance leaders, including Carlyle CEO Harvey Schwartz and Citigroup CEO Jane Fraser, anticipated such cuts. "Inflation is more embedded in the global economy than the current narrative," noted Goldman Sachs CEO David Solomon.

JPMorgan Chase CEO Jamie Dimon echoed these sentiments at the American Bankers Association convention, suggesting inflation could rebound similarly to the 1970s. The looming inflationary pressures were partly attributed to anticipated rising U.S. government spending, regardless of which party secures the presidency. Both Vice President Harris and former President Trump's economic proposals are projected to significantly increase the national debt, with Trump's policies likely contributing more.

During recent discussions, leaders such as Rowan cited defense production increases and President Biden's landmark legislative actions as inflationary factors. Carlyle's Schwartz pointed out the paradox of cutting rates amid significant deficits and robust economic conditions.

A year ago, many of the same executives had a gloomier outlook, anticipating the repercussions of high interest rates amid rising geopolitical tensions. Despite ongoing conflicts in Israel and Ukraine, stocks of major banks and finance firms have surged by at least 40% over the past year. Reflecting on the past year's market performance, State Street CEO Ron O'Hanley remarked on the unexpected avoidance of a global recession.

David Hollerith, a senior reporter for Yahoo Finance, noted that the executives' focus might signal a shift in financial strategy amid enduring inflationary challenges.