Blackstone CEO Stephen A. Schwarzman has said that, "I don't know if the country is prepared for... four more years of that."
Steve Schwarzman, Chief Executive Officer of Blackstone Inc., expressed his anticipation for the Federal Reserve to decrease interest rates, noting the return of "animal spirits" to the markets as more investors share this expectation.
In an interview with Bloomberg TV during the World Economic Forum, Schwarzman acknowledged the challenge of predicting the Fed's timing on rate declines, creating a "baffling effect" among investors. Nevertheless, he emphasized that the anticipation of lower interest rates is revitalizing "animal spirits," referring to the emotional factors influencing financial markets.
Schwarzman highlighted an increase in the pace of private equity investments at Blackstone, the world's largest alternative asset manager. The firm is also exploring opportunities to engage in deals with leveraged holders of European real estate seeking to liquidate properties for cash.
As a notable Republican donor, Schwarzman disclosed that he is still evaluating which presidential candidate to support in the upcoming election. Alongside other financial executives, he is keeping his choice undisclosed as the presidential race gains momentum.
Expressing a desire to gauge public sentiment, Schwarzman stated, "I’d like to see what the public thinks rather than what I think," emphasizing the need to observe how the political landscape unfolds.
When questioned about the potential outcome if President Joe Biden leads for another term, Schwarzman raised concerns about the country's deficits and mentioned that the administration's border policy has faced criticism. He expressed uncertainty about the nation being prepared for four more years of such policies, citing negative poll responses to these issues.
