David Rubenstein, Co-Chairman of Carlyle Group, shares his views on the upcoming interest rate cuts by the Federal Reserve.
Rate Cut Predictions
In an interview on Bloomberg Surveillance, Rubenstein stated he expects a 25 basis points cut in September. He mentioned that he would be 'very surprised' if there was a larger cut.
Views on Fed Independence
Rubenstein emphasized the importance of Fed independence, noting President Trump's attempts to dismiss Board Member Lisa Cook as efforts to exert influence. He remarked that while this might be resolved in courts, the markets are largely unaffected by such actions.
Market Reactions Analysis
Rubenstein observed that investors have already priced in Trump's style, stating 'Markets don't like uncertainty'. He added that 'investors have priced in these moves, and the indices are still trading near their peaks.'
Rubenstein expressed confidence that the Fed will remain one of the most respected institutions in the U.S., despite current attempts at interference.
