Blackstone CFO Cautiously Optimistic on Inflation Cooling Faster Than Expected
In a recent conference, Blackstone's Chief Financial Officer, Michael Chae, expressed cautious optimism about a potential soft landing as inflation appears to be cooling faster than anticipated. Chae highlighted the recent data showing a 2.5% rise in August CPI but pointed out that excluding shelter, the year-over-year CPI is closer to 1.7%.
While some CEOs in Blackstone's portfolio companies are predicting a recession in the next 12 months, Chae believes that both inflation and the economy are showing signs of cooling. He emphasized that the 10-year Treasury rate is more crucial for investors than the debate over whether the Fed will cut rates by 25 or 50 basis points.
Overall, Chae's remarks suggest a positive outlook for the capital markets and Blackstone's business in the current economic context. As inflation slows and the economy cools, investors may find opportunities for growth and stability in the market. Stay tuned for more updates on the evolving financial landscape.