Blackstone CFO Cautiously Optimistic on Inflation Slowdown, Predicts Soft Landing - Investment Insights
In a recent conference, Blackstone's Chief Financial Officer Michael Chae expressed cautious optimism about a soft landing as inflation appears to be cooling faster than expected. While the future remains uncertain, Chae highlighted positive indicators such as a slowdown in both inflation and the economy.
According to a Blackstone survey, only 14% of CEOs running the company's portfolio companies predict a recession in the next 12 months. Chae pointed out that recent data showing a 2.5% rise in August CPI may not fully reflect the current situation, as housing inflation is a lagging component in the CPI.
Chae estimates that excluding shelter, the CPI year over year in August is around 1.7%, indicating a slower inflation rate than initially perceived. He also emphasized that the destination of the 10-year Treasury rate is crucial for investors, noting that the current mid- to high 3s level provides a favorable context for the capital markets and business operations.
In conclusion, while uncertainties remain in the financial market, Chae's cautious optimism and analysis suggest a potential soft landing and favorable conditions for investors. It is important for individuals to stay informed about economic trends and market developments to make informed decisions about their finances.