Carlyle CEO Notes Credit Market Volatility but No Economic Deterioration.

Carlyle Group CEO Harvey Schwartz has expressed concern over credit market volatility, but believes it does not indicate significant economic deterioration. Schwartz notes that company data suggests steady growth, employment, and inflation, which he believes is a positive sign. Despite the credit market turbulence, Schwartz remains optimistic about the economy.

Carlyle Group CEO Harvey Schwartz has expressed concern over recent turbulence in credit markets, but remains optimistic about the overall economic outlook. Speaking to Bloomberg Television from the Formula 1 U.S. Grand Prix in Austin, Schwartz acknowledged that credit markets have been unsettled by recent defaults and loan fraud reports, but emphasized that his company's data does not indicate significant cracks in the economy, according to a Seeking Alpha article.

Schwartz noted that Carlyle Group's holdings suggest steady growth, stable employment, and a manageable level of inflation. He believes that while credit market volatility is a concern, it does not yet signal a broader economic deterioration. "Data suggests that companies are growing, employment is steady, inflation is a little sticky, but there’s nothing in the immediate horizon that suggests that things are crumbling," Schwartz stated, the Seeking Alpha article reported.

Despite the credit market turbulence, Schwartz remains optimistic about the economy. He highlighted that Carlyle Group's partnership with Red Bull aims to expand the firm's global visibility, but emphasized that investment performance remains the top priority. The Carlyle Group recently entered a multi-year sponsorship deal with Oracle Red Bull Racing, aiming to reach new audiences and enhance its brand, the Seeking Alpha article added.

In a separate development, Federal Reserve Chair Jerome Powell is set to discuss recent economic data and interest rates this Friday. Powell will participate in a discussion hosted by the Dallas Regional Chamber at 4 PM Beijing time, marking his first public address since the Federal Reserve's November 7 press conference, according to a Moomoo post. At that press conference, the Federal Reserve lowered the interest rate target by 25 basis points to a range of 4.5% to 4.75%, following a 50 basis point cut in September. Powell emphasized that the Federal Reserve would make interest rate decisions based on incoming data and the evolving outlook, and that the committee would carefully assess risk balance, the Moomoo post noted.

The pricing in the interest rates futures market suggests a high probability of a 25 basis point rate cut at the December meeting. However, the probability of maintaining the current rate is less than 20%, the Moomoo post observed. An update to the quarterly economic projections summary indicates a median forecast of a 1 percentage point rate cut for 2024, followed by another 1 percentage point cut in 2025, according to the same post.

In conclusion, while Carlyle Group CEO Harvey Schwartz has expressed caution over credit market volatility, he remains optimistic about the overall economic outlook. Federal Reserve Chair Jerome Powell is set to discuss recent economic data and interest rates this Friday, with the futures market suggesting a high probability of a rate cut at the December meeting.