Blackstone’s Stephen Schwarzman challenges official inflation numbers

  • Inflation is lower than what the consumer price index shows, according to Blackstone CEO Stephen Schwarzman
  • Interest rates could stay higher for longer if the Fed relies on official numbers
  • Schwarzman believes the Fed’s inflation numbers are overstated by around 1.5 to 1.7 percentage points
  • The increase in rents is currently between zero and 1%, contrary to the latest CPI report
  • Schwarzman expects rate cuts in the second half of 2024

Blackstone CEO Stephen Schwarzman believes that inflation is lower than what the consumer price index (CPI) shows. He argues that if the Federal Reserve relies on the official numbers, it could mean that interest rates stay higher for longer than necessary. Schwarzman points out that the increase in rents is currently between zero and 1%, contrary to the latest CPI report. He believes that the Fed’s inflation numbers are overstated by around 1.5 to 1.7 percentage points. While markets expect rate cuts from the Fed this year, Schwarzman expects them to happen in the second half of 2024. Despite his criticism of the Fed’s data, Schwarzman commends the central bank for its work in bringing down inflation without causing a recession.

Public Companies: Blackstone (BX)
Private Companies:
Key People: Stephen Schwarzman (CEO of Blackstone), Andy Serwer (Editor at Large of Barron’s)

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Factuality Level: 4
Justification: The article contains some subjective statements and opinions from the CEO of Blackstone, Stephen Schwarzman, regarding inflation and interest rates. While Schwarzman provides his perspective on the data used by the Fed and the accuracy of inflation numbers, there is no concrete evidence or expert analysis provided to support his claims. The article also includes some unnecessary background information about Schwarzman and Blackstone’s growth, which is tangential to the main topic of inflation and interest rates. Overall, the article lacks objective reporting and relies heavily on the personal opinions of Schwarzman.

Noise Level: 3
Justification: The article contains some relevant information about inflation and the Fed’s policy stance. However, it lacks depth and analysis, and the inclusion of unrelated information about Blackstone and a Taylor Swift-themed Christmas video detracts from the overall coherence and focus of the article.

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the potential impact of inflation on interest rates and the Federal Reserve’s policy stance. It also mentions Blackstone, a major financial company.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on financial topics, specifically inflation and interest rates. It does not mention any extreme events.

Reported publicly: www.marketwatch.com