Andre Estevez, the billionaire chairman of Banco BTG Pactual SA, said he was concerned about the lack of discussion about the ballooning US budget deficit and excessive money printing.
The Brazilian banker compared investors’ concerns about his country’s fiscal situation, which has roiled financial markets, to relative quiet about the situation at the US Federal Reserve. He also said the Fed is overcommunicating, which is creating more volatility in the market.
“For me, the challenge in the United States has to do with the budget deficit and the debate about it. Or to put it better, the debate about it in the national movement,” Estevez said in an interview with Bloomberg New Economy (B20) in São Paulo. That’s what’s missing,” he said. . “The reality is that even if you are a printer owner, there are limits to what you can print.”
Estevez also said he is not concerned about the possibility of Donald Trump returning to the US presidency and is not as “pessimistic” as others about the current state of geopolitics.
“When I think about the election of President Trump, I think he was a tough but responsible person,” Estevez said. “Chaos can sometimes occur in the salon, and that’s not necessarily a bad thing. Someone arriving with unpredictable behavior can lead to more predictable behavior in everyone else.”
As for Brazil, Estevez said he expected continuity with the central bank during the transition period and praised the tax reform plan being passed by Congress, but said he expected government spending to be reduced to allow for more accommodative monetary policy. He said he would like it to be reduced.
He said that while the financial situation is discussed daily by newspapers, politicians and investors, similar discussions are not taking place in the United States.
“The difference is we don’t own the printers, so we have to be more stringent,” Estevez said.
The New Economy at B20 is hosted by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.
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