Wall Street giants are now very worried about one thing: the resurgence of inflation!

Some top figures on Wall Street are increasingly worried about one thing: inflation will be "inescapable," and they may be more concerned than the occupant of the White House in 2025.

BlackRock CEO Larry Fink said at the Future Investment Initiative summit in Saudi Arabia on Tuesday, "I believe we are facing a more severe implicit inflation than ever before," adding, "No one is asking the question, 'At what cost?'"

Among the Wall Street figures attending the annual Future Investment Initiative summit, almost no one is willing to make strong predictions about whether Harris or Trump will win on November 5th.

Citadel CEO Ken Griffin said, "There is a greater likelihood of Trump winning, but it's almost a coin toss."

Trump supporter and Blackstone CEO Stephen Schwarzman admitted he doesn't know who will win, but he said Trump now "knows more about the job than he did in 2016."

Apollo CEO Marc Rowan said, "If Trump wins," he expects to see more mergers and acquisitions.

Regardless of who wins the election, most financial executives are concerned that inflation will prove more stubborn than expected. Therefore, they expect interest rates not to decline as rapidly as traders currently anticipate. Fink said, "We will not see rates as low as people predict."

Traders expect the Fed to cut rates by 25 basis points again next week, and then cut rates again in December, the Fed made its first rate cut in over four years in September, by 50 basis points, after taking aggressive action to curb inflation.

But at a conference in Saudi Arabia on Tuesday, a moderator asked them to raise their hands if they expected the Fed to cut rates by another 50 basis points this year, and no financial executives in the group raised their hands.

The group members include Carlyle CEO Harvey Schwartz, Citigroup CEO Jane Fraser, Goldman Sachs CEO David Solomon, Morgan Stanley CEO Ted Pick, and State Street CEO Ron O'Hanley.

Solomon said, "The extent to which inflation is embedded in the global economy far exceeds current narratives. But that doesn't mean it will come back in a particularly bad way, but I do think it depends on policy actions, there is that possibility."

JPMorgan Chase CEO Jamie Dimon said at the American Bankers Association annual conference on Monday that he is also concerned about inflation making a comeback. He said, "In my view, inflation may not disappear quickly," noting that long-term trends suggest inflation could rebound as it did in the 1970s.

Wall Street's concern about inflation is partly due to the fact that regardless of which party is in power, U.S. government spending will continue to increase. According to the non-partisan Federal Budget Committee, current Vice President Harris and former U.S. President Trump both proposed economic policies during their election campaigns that could increase the U.S. national debt by tens of trillions of dollars, although Trump's policies would increase it more. Carlyle Group's Schwartz stated on Tuesday, "We are facing massive deficits, along with a strong actual economic condition."

At the same event last year, many of the same CEOs were even more pessimistic about the near-term outlook for the global economy.

They are still waiting to see the impact of high interest rates on the U.S. economy as the geopolitical environment becomes increasingly hostile. The conflicts in the Middle East have not ended, nor has the conflict in Ukraine. However, the stocks of many major banks, asset management companies, and private equity firms have all risen by at least 40% compared to a year ago.

On Tuesday, Ohanley of Dodge & Cox Group said, "The good news is that this time last year, people were making all sorts of predictions about a global economic recession, and we pretty much avoided that scenario."