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(Bloomberg) -- US President Donald Trump’s policies will lift the economy and support public and private markets, according to Franklin Templeton Investments’ chief executive officer.

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Trump’s support of deregulation, and his proposed spending policies and tax cuts will all go toward boosting growth, Jenny Johnson said in an interview with Bloomberg TV at Davos on Tuesday. “I think the view is that he’s going to be good for the economy and that therefore is good for both public and private markets.”

Franklin oversees around $1.7 trillion in assets.

Speaking on the president’s threats to impose tariffs on Mexico and Canada, Johnson said Trump has consistently used the negotiating tactic of making broad statements and following up with a more practical approach.

The executive said the Federal Reserve will “pause right now” on its rate-cutting path to evaluate the impact of Trump’s policies on the economy. Johnson said she expects the US 10—year Treasury yield will be at around 5% by the end of the year.

Johnson pointed to cryptocurrency as another sector that’ll be shaped by Trump’s policies. “We will start to see them converge more: traditional finance and crypto,” she said. “We need to have some sort of regulatory clarity so that you can bring these together.”

In private markets, Johnson sees opportunities in secondary private equity and real-estate debt.

“There’s about $150 billion deployed in secondary private equity,” including in deals with large discounts, she said.

Regional banks in the US have been unable to lend to real estate like before — creating an opportunity for private-credit managers with sector expertise, according to Johnson.

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