The head of Blackstone, the world’s largest alternative asset manager, expressed doubts about the US economy if President Joe Biden wins re-election in the US this year.
Stephen Schwarzman made the comments after being asked what he thought would happen to the economy if Biden was elected to a second term.
Speaking to Bloomberg, he said: “We now have a $2 trillion deficit with no end in sight.
“We have a debt-to-GDP ratio [ratio] We’re going upstairs. We have open borders with access of eight million people.
Blackstone’s CEO said he believes the US economy is not ready for another term in office for Biden
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“I honestly don’t know that the country is ready for another four years of this.”
The US national debt reached $34.1 trillion as of January 31, according to the US Real-Time Debt Clock.
This is more than the combined GDP of the five largest global economies after the United States – China ($17.9 trillion), Japan ($4.2 trillion), Germany ($4.0 trillion), India ($3.4 trillion), and the United Kingdom ($3.0 trillion). And the World Bank. Show data.
On the same day, the US federal budget deficit reached $1.75 trillion.
However, Schwarzman said he is “optimistic” for 2024.
Indicating that the economy is slowing down “a little,” he said: “This is normal with rising interest rates.”
However, Mr. Schwarzman said he is certain the Fed will cut interest rates, and expects them to be lowered in the second half of the year.
“I think 2024 is going to be a good year. I think it’s going to start slower in the sense that interest rates are still very high and the Fed will keep them that way… maybe until the second half,” he added. [of the year]”.
The US presidential elections are scheduled to be held this winter
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The Federal Reserve kept its interest rate target at 5.25 to 5.5 percent on Wednesday.
“We will get the cuts,” Schwarzman insisted, explaining that the way Blackstone measures inflation means they find it is already at the Fed’s 2 percent target.
“I think they will certainly lower interest rates.”