Carlyle’s David Rubenstein Reportedly Says A 50 Bps Cut Next Week From Fed Would Scare The Markets: Here’s Why

Carlyle Group’s co-founder and co-chairman, David Rubenstein, on Thursday reportedly said that a 50-basis-point interest rate cut from the Federal Reserve next week would scare the markets about the state of the U.S. economy.

In an interview with CNBC, Rubenstein stated that the Fed’s monetary policy action next week will be on predictable lines. “Clearly, the Fed next week will obviously do something we all expect. I don’t think it’s going to be a surprise,” he said.

As for the quantum of the interest rate cut, Rubenstein said he believes the central bank will stick with the more widely expected 25-basis-point cut instead of a larger 50-basis-point cut.

“It will have to be 25 basis points. If the Fed were to go 50 basis points, it would scare the markets that the economy is weaker than what the markets think it is, and I think it would be too much for the market to absorb,” Rubenstein added.

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