IBM Vice Chairman Gary Cohn said Wednesday's stock market selloff was driven in part by the reaction to the presidential debate between former President Donald Trump and Vice President Kamala Harris.
Cohn made the comments during an appearance on CNBC after the Dow Jones index. Fell It rose 1.6% in early trading.
“I know she has a plan. I just don't know what that plan is.”
“It's certainly a factor. I think people are going to watch last night's debate and exaggerate the impact it will have and exaggerate what the candidates can or can't accomplish,” Cohn said.
“I think people might change their minds once they begin to understand the reality of how hard it is to change policy, but the knee-jerk reaction that came from last night's debate has nothing to do with what side you're on or which candidate you support,” he continued.
“I think there are a lot of people today who would respond like that,” he added. “And I think that's very removed from the reality that we're going to be legislating, we're going to be passing laws, we're going to have a new economic environment, a new tax environment, a new regulatory environment, a new tariff environment.”
Cohn also said there was a “very good chance” that Republicans would win the US Senate, which he said would act as a check on Harris if she wins the presidential election.
“To change the tax system, you need to get Republican votes. I don't think Republicans are going to vote for a corporate tax increase. I don't think they're going to vote for a tax on unrealized gains. I don't think they're going to vote for a big increase in capital gains taxes,” Cohn said.
“There's probably a middle ground,” he said, referring to his time as national economic adviser to President Trump. “There were times when Democrats and Republicans met, so there's always room for an agreement to be reached.”
He also appeared to mock Harris for omitting details of her economic plan while claiming to have a plan for the American people.
“She has a plan. I know she has a plan, OK? I know she has a plan,” Cohn said. “I don't know what her plan is.”
But Cohn, like others, said short-term selling was New Economic Data The August inflation rate came in better than expected, after which the index rebounded from its lows into positive territory on Wednesday.
The interview with Cohn can be viewed on CNBC's YouTube account.
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