Strongly promoting deregulation and tax cuts! Wall Street rushes towards "Trump 2.0"

Trump's victory has been confirmed. Business leaders on Wall Street, including those who previously opposed Trump, are flocking to "Trump 2.0," preparing for potential tax cuts and deregulation policies.

According to a report by The Wall Street Journal on November 8, since the election, Gary Cohn's phone has been ringing off the hook. With the formation of Trump's new cabinet underway, the former Goldman Sachs president and economic advisor during Trump's first term has become a focal point on Wall Street. As an "informal liaison" between the presidential circle and Wall Street, Cohn may reveal information about the new government's policy direction and key cabinet appointments.

According to the report, compared to 2016, more business leaders this year have shown interest in positions such as deputy secretary and assistant secretary in the White House. Howard Lutnick, CEO of financial firm Cantor Fitzgerald, has also become a "headhunter" for Trump's team, recently communicating with heavyweight figures like the CEO of Apollo Global Management to help Trump select key positions.

Wall Street executives, regardless of their past attitudes toward Trump, are actively aligning themselves with him. U.S. stock investors have also shown strong enthusiasm for the "Trump trade," with U.S. stock indices reaching new highs this week. This reflects the financial sector's expectations for tax cuts, regulatory easing, and economic expansion.

Flocking to "Trump 2.0," from dislike to firm supporters

Tesla CEO Elon Musk and hedge fund manager Scott Bessent are among the financial figures who are staunch supporters of Trump's campaign this time.

Moreover, according to The Wall Street Journal, before the election, many top financiers had already expressed support for Trump, trying to position themselves ahead of the election results to avoid retaliation from Trump—who is known for punishing those who offend or betray him.

Although many in the financial sector supported Trump early on, some financial moguls like Paul Singer of Elliott Management and Stephen Schwarzman of Blackstone hesitated for a long time on whether to support Trump.

After some struggle, Singer ultimately became a "fan" of Trump, donating $5 million to Trump's Super Political Action Committee (Super PAC). Singer had previously supported U.S. Senator Marco Rubio, and his partner had raised funds for former South Carolina Governor Nikki Haley. Another top mergers and acquisitions banker, who typically supports Democrats, felt disappointed by the election results, but his corporate clients were excited about Trump's low corporate tax rate policies.

Now, some Wall Street figures who were previously reserved about Trump or contributed little to his campaign have begun to open their wallets generously, willing to provide financial support for the upcoming presidential inauguration.

Wall Street executives have revealed that their support for Trump is not only a professional necessity but also due to the Democratic Party's stance on social issues, such as transgender issues, gradually pushing them to the right. This shift is particularly evident in investor Bill Ackman, who has transitioned from being a former Democratic supporter to a staunch supporter of TrumpLarge American banks are also preparing to reap the benefits of regulatory relaxation, as their CEOs have been lobbying for such reforms for years. JPMorgan Chase CEO Jamie Dimon and Goldman Sachs CEO David Solomon have both publicly congratulated Trump on his victory, stating that the new government's policies will have a significant impact on banking operations.

However, Wall Street professionals have concerns about their support for Trump. While they look forward to tax cuts and reduced regulation, they are also worried that Trump's policies could reignite inflation and lead to an economic slowdown. Some are concerned about whether Trump will implement some extreme policies, especially high tariffs