Connecticut governor Ned Lamont (D) is warning that New York City's next mayor may rattle its financial ecosystem, which could reverberate across state lines.
"New York City success is our success, especially when it comes to finance and Wall Street," Lamont told Yahoo Finance's Opening Bid.
His comments come amid growing investor chatter over the prospect of a win by Zohran Mamdani, the Democratic socialist whose mayoral campaign has leaned heavily on promises to rein in corporate power and tax the wealthy.
His rhetoric, which leans on a pro-worker, union-backed agenda, has triggered unease among some business leaders -- and neighboring states that benefit from New York's financial industry.
Whether Mamdani's administration could spark an exodus of Wall Street jobs, Lamont did not rule out the possibility.
"There's a risk of that," he said. "Or for him, there's a risk that some of those folks in New York City say, 'Hey, maybe I want to come to Connecticut, seems to be a more stable environment.'"
Wall Street is the beating heart of the tri-state economy, and any shake-up in City Hall could spill over into Connecticut, where financial services anchor thousands of jobs and billions in tax revenue.
Southern Connecticut, in particular, functions as a commuter hub for finance professionals who work in Manhattan. But Lamont is facing a delicate moment for his own state's economy.
A recent report by National Business Capital ranked Connecticut the second most at risk-state in the country for entering stagflation -- an economic condition defined by high inflation and sluggish growth. California was the only state deemed more vulnerable.
The report cited high expenditures, low productivity, and elevated underemployment, tempered only by strong personal income growth.
Lamont argued the state's "income tax revenues are still pretty strong," and called its overall economy "quite strong."
He noted the state's labor market showing "some softness." But he cited sectors like healthcare, fintech, and advanced manufacturing -- tied to military submarines, helicopters, and jet engines -- as particularly robust.
Lamont downplayed recession concerns flagged by Moody's economist Mark Zandi, who included Connecticut as one of 22 states in a recession or at a high risk of one. The governor pointed to a string of balanced budgets, a budget surplus, and a $4 billion rainy day fund.
He also highlighted ongoing investments and federal initiatives, noting that projects like the $5 billion Orsted offshore wind development show Connecticut remains attractive to major industrial and clean-energy players.