Blackstone CEO Schwarzman Sees U.S. Economy on Good PathDevin Banerjee
Blackstone Group LP’s Steve Schwarzman, who runs the world’s biggest manager of alternative assets such as private-equity funds and real estate, said the U.S. economy is on a “pretty good path” as the Federal Reserve gradually reduces its monetary stimulus.
A reduction in the Fed’s asset purchases won’t affect Blackstone, Schwarzman said today in an interview with Bloomberg Television’s Stephanie Ruhle and Erik Schatzker at the World Economic Forum in Davos, Switzerland. The firm, which oversees more than $248 billion in assets, prepared for rising interest rates by swapping long-term fixed-rate bonds in its credit business to floating-rate bonds last year, he said.
“I think the Fed has done a really remarkable job, starting from the depths of the financial crisis, helping the global economy and the U.S. economy right itself,” Schwarzman, 66, said. “I don’t believe that they’re going to increase interest rates so quickly as to basically throw the U.S. into a no-growth or negative-growth situation. So we don’t live in fear of Fed tapering.”
Schwarzman said real estate will perform well even as interest rates increase, because rising rates are typically accompanied by inflation. Blackstone is one of the largest owners of private real estate, with more than $68 billion in property assets under management.