Private Equity: Stephen Schwarzman Isn’t Sure the Fed Can Restore Confidence

March 4, 2020 | Latest News, News, Private Equity
https://dailyalts.com/wp-content/uploads/2019/09/Marriner_S._Eccles_Federal_Reserve_Board_Building.jpg

Blackstone CEO Stephen Schwarzman said it “remained unclear” if the Fed can restore economic confidence following the coronavirus outbreak. The Federal Reserve slashed interest rates by 50 basis points on Tuesday. Fed Chair Jerome Powell is attempting to reduce economic fallout due to the spread of the virus. However, the Dow still shed more than 700 points after the rate cut.

Blackstone CEO Stephen Schwarzman on the Fed

Stephen Schwarzman said it will still be a while before we know if the Fed’s gambit will work.

“It’s unclear whether that response will re-establish confidence because the confidence is really about the disease and not about the financial markets per se,” he said during a talk in Mumbai.

Schwarzman isn’t the only voice raising concerns about the Fed. President Donald Trump said Tuesday that the Fed must continue easing. “We are not playing on a level field,” Trump tweeted. “Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!”

Meanwhile, former Treasury Secretary Larry Summers has also criticized the Fed for its preemptive action. Summers said that the central bank risks “scaring people” with its interest rate cut. “When you have limited ammunition you have to conserve it,” Summers said. “The Fed has limited ammunition with interest rates so low. Interest rates don’t cure the #coronavirus and interest rates don’t repair supply chains.”

Recent: Private Equity: Blackstone Group Buys NRStor C&I

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”
Shape

Latest Alternative Investment News

Alternative Investments: Activists Will Get Busy Soon, Says Tim Melvin

As companies become more undervalued as the economy slows because of shutdown orders across the United States, I expect that the pace of activist activity to increase. We should see…

https://dailyalts.com/wp-content/uploads/2020/04/54e5d0424b54b10ff3d8997cc3213f771737c3e456597441702a7cd297_640.jpg
Private Equity: Active Triage Happening at KKR and Other Funds
April 2, 2020     News, Private Equity

KKR & Co (NYSE: KKR) has shelved a plan to sell Singapore-based Goodpack, a Singapore based shipping containers, and logistics services.  They had bids for the company that was said…

https://dailyalts.com/wp-content/uploads/2020/04/key-visual-kyash.jpg
FinTech: Kyash Closes $45M Series C Funding
April 2, 2020     FinTech, News

Kyash, a Japanese fintech startup aspiring to be a leading challenger bank, gained $45 million in a Series C funding. The round was co-led by Greenspring Associates and Goodwater Capital,…

https://dailyalts.com/wp-content/uploads/2020/04/dollar-1362244_640-mmfs.jpg
Liquid Alternatives: Investors Shovelled $677B Into Money Market Funds In Scramble to Safety
April 2, 2020     Liquid Alternatives, News

Investors set up a record-breaking first quarter this year for inflows into U.S. money market funds. These funds gained from the massive risk-off sentiment that prevailed as investors realized the…

Scroll to Top