Hochul’s declaration was delivered during an interview with Bloomberg TV, in which she underscored her opposition to tax increases and reinforced her pro-business values. Hochul said businesses need to know that “the city of New York, as powerful and mighty as it is, is still a subdivision of the state, so any tax increase has to come across my desk first.” Mamdani campaigned on tax increases including a new tax on millionaires and an increase in the state’s corporate tax rate.

The governor’s remarks were widely seen as both a pitch to reassure nervous business leaders and a marker of her intent to maintain a pragmatic working relationship with whoever occupies City Hall—even if it’s a Democratic Socialist like Mamdani. She said she’ll work “to help him understand that when we want to solve society’s problems, and there are many, we also need to make sure we have the resources to do it.” That involves, in Hochul’s opinion, being business-friendly in the sense of “letting people know” that building companies, creating wealth and hiring people is appreciated.

Mamdani and Bloomberg: An unexpected summit

While Hochul was affirming her capitalist bona fides, Mamdani took the extraordinary step of meeting with Mike Bloomberg, the billionaire businessman and former mayor known for his centrist politics. Bloomberg, who previously spent millions to oppose Mamdani’s primary bid, did not endorse the socialist but spent the session discussing transportation, policing, and the mechanics of City Hall staffing.

The encounter was described as friendly and “quite substantive,” according to Bloomberg’s advisor Howard Wolfson. Mamdani’s willingness to engage with establishment figures like Bloomberg signals his intent to build a broad coalition, despite marked differences on issues like taxation and policing. The Times reported that they had never before met each other.

The optics of this meeting present a balancing act for Mamdani as he seeks both progressive support and the confidence of business elites increasingly anxious about his economic platform. It represents a departure from the style of former Mayor Bill De Blasio, who was Bloomberg’s left-wing successor, widely known to keep a close counsel. Kathy Wylde, CEO of the Partnership for New York, said on Bloomberg’s Odd Lots podcast in July that De Blasio was not known for engaging with major business leaders in this fashion throughout his eight years in office. She also said business leaders were anxious, if not terrified, at the idea of Mamdani being elected, but also quite complimentary of his political skills.

One of those business leaders, JPMorgan CEO Jamie Dimon, called Mamdani “more of a Marxist than a socialist” in July, while breaking with many of the “idiots” in the Democratic Party. Dimon, long thought to be sympathetic to the Democrats if not always a registered Democrat himself, said the party had “big hearts and little brains.” And yet Dimon got on the phone and had a friendly conversation with Mamdani soon afterward, Bloomberg reported, citing people briefed on the call. Bloomberg further reported that Wylde had been helping to facilitate meetings beween Mamdani and the business class, giving out his campaign contact information to roughly a dozen executives while also arranging connections with other candidates.

Mamdani’s changing tone

In another dramatic development, Mamdani issued an apology for remarks made during the 2020 George Floyd protests, when he called the NYPD “racist, anti-queer & a major threat to public safety.” Mamdani also repeated the slogan, trending at that time and later criticized by figures including James Carville as harmful to left-wing causes, advocating for the defunding of the police. In comments to the Times, he acknowledged that his previous words were delivered “at the height of frustration” and do not reflect his current outlook or campaign priorities.

Union leaders cautiously welcomed the apology, viewing it as a necessary step in establishing trust between Mamdani and law enforcement—a group historically skeptical of his platform. However, critics and some rank-and-file officers remain unconvinced, accusing Mamdani of political opportunism as Election Day approaches.

With recent polls showing Mamdani leading his rivals by double digits, the intersection of Hochul’s pragmatism, Mamdani’s outreach, and the powerful symbolism of their evolving relationship promises a uniquely unpredictable contest for New York’s future.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.