Blackstone’s Gray Predicts Extended Period of Elevated Rates

  • Gray says market too optimistic predicting a weaker economy
  • Gray says the world is in ‘much better spot’ than in 2008

Jonathan Gray

Photographer: Simon Dawson/Bloomberg
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Blackstone Inc.’s Jonathan Gray expects the US Federal Reserve will raise interest rates to 5.25% to 5.5% and will then hold there an extended period of time, despite emerging signs of slowing inflation.

The Federal Reserve is likely to take rates up to that level “for a while,” the president of the world’s biggest alternative asset manager said at an event in Hong Kong. The market is “too optimistic” over the economy weakening, he said.