Billionaire investor warns recession ‘won’t be easy’ to avoid
The Fed may face challenges if they raise interest rates without ‘destroying the economy,' Carlyle Group co-founder David Rubenstein said
The Carlyle Group co-founder David Rubenstein argues The Fed may face challenges if they decide to raise interest rates without ‘destroying the economy.'
The Carlyle Group co-founder David Rubenstein joined "Mornings with Maria," Tuesday, warning that recession "won’t be easy" to avoid, and the Fed may face challenges if they decide to raise interest rates without "destroying the economy."
FORMER FED CHAIR BERNANKE SAYS INFLATION TODAY ISN'T 'ANYWHERE NEAR' 1970S PRICE SPIKE
DAVID RUBENSTEIN: I do agree with [former Fed Chair Bernanke] that the situation is different than the 1970s. I worked in the White House then, and it was a much different situation, a different type of economy. We got interest rates up to about 19%. Inflation was about 15%, and the economy was completely different. Now we're faced with a serious situation and not quite what we had in the 1970s… I think the Fed has the ability and much greater knowledge than the Fed probably had about the economy in the 1970s.
…
The Carlyle Group co-founder David Rubenstein told FOX Business that the Fed may face challenges if they decide to raise interest rates without ‘destroying the economy.'
We have the ability to avoid a hard landing or a recession, but it's not easy, when you're increasing interest rates, you never can stop it exactly when you want to stop it… the Fed has telegraphed what it's going to do, and I think it's probably going to follow through with that… it could be a challenge in getting the exact right mixture of higher interest rates without destroying the economy and hurting employment… nobody's perfect in this. I think the Fed has a pretty good handle on [this]… Jay Powell is somebody the market has a lot of confidence in.
WATCH THE FULL INTERVIEW BELOW:
The Carlyle Group co-founder David Rubenstein argues The Fed is attempting to avoid stagflation and not raising interest rates ‘too much’ amid soaring inflation.