Blackstone Sees Fed Funds Rate Near 5% on Longer Hiking Cycle

The Federal Reserve will need to go on a longer tightening cycle and raise interest rates well into next year to control inflation that Blackstone Group sees as “more deeply entrenched” in the US.

“My own view is the Fed funds rate could exceed 4%. I think they could go above 4.5%, maybe even closer to 5%,” Joseph Zidle, chief investment strategist in Blackstone’s Private Wealth Solutions group, said in a Bloomberg Television interview and in emailed comments.