Carlisle Group co-chair and co-founder David Rubenstein announced that he expects the Fed to cut 25 basis points in September.
Speaking about Bloomberg’s surveillance, Rubenstein appreciated President Donald Trump’s move in reviving debates about the Fed’s independence and market responses to them.
Rubenstein said Trump’s attempt to remove Fed board member Lisa Cook is part of his goal of lowering interest rates, saying, “The president wants to lower interest rates and it’s been heavily decided on the issue. Jerome Powell has expressed his hopes of cutting interest rates in recent remarks.”
Reubenstein said he doesn’t expect any surprises from the market, saying, “I think we’ll cut 25 basis points in September. We’d be very surprised if there’s a bigger cut.” Reubenstein highlighted the importance of the Fed’s independence, although the process is likely to be resolved in court, while the market has been barely affected by Trump’s actions.
Rubenstein, who said Trump recently took extraordinary steps in Washington, said his attempts to partner with Intel and his efforts to reject Fed members were not unexpected by investors.
“The market doesn’t like uncertainty, but President Trump’s style is well known. Investors take on the price of these moves, and the index is still trading near their peak.”
Rubenstein said the Fed is one of the most respected institutions since 1913, and the process never completely shakes confidence in the institution.
*This is not investment advice.
