Tensions Flare at Milken Conference as Mnuchin, Lighthizer Clash with Investors Over Tariffs

In a tense closed-door meeting, prominent figures in the U.S. financial sector engaged in heated exchanges, highlighting the growing friction between Wall Street and the White House. The event, part of the annual Milken Institute Global Conference, saw Finance Minister Steven Mnuchin and former U.S. Trade Representative Robert Lighthizer at the center of contentious debates with investors.

Mnuchin, who attended a private dinner at Wolfgang Puck's Spago restaurant in Beverly Hills, faced questions from investors about the potential impact of new tariff policies. When one investor warned that a full implementation of the tariffs could lead to a withdrawal of investments from the U.S., Mnuchin interjected, questioning where else they could find similar investment opportunities. This response was seen by some as a dismissive attitude towards investor concerns, with one infrastructure investment company executive summarizing it as telling investors to "grow up" and that the Trump administration was not there to rescue them.

Meanwhile, at another dinner hosted by Citigroup CEO Jane Fraser, Lighthizer engaged in a heated discussion with hedge fund manager Bill Ackman and other attendees. The conversation turned contentious as Lighthizer was questioned about the rollout of tariffs and their potential to disrupt the economy and markets. Despite the private tensions, public criticism of the administration was minimal, with many attendees cautious about speaking out due to fears of retaliation.

The overall mood among attendees was one of caution and anxiety. One credit investment company founder noted an "unstable quality" in the air, with people approaching the situation with hesitation. The optimism that had characterized previous years had dissipated, replaced by a sense of disappointment and frustration. The event underscored the delicate balance between the financial sector's need for stability and the administration's aggressive trade policies, which continue to be a source of uncertainty and concern for investors.