The Carlyle Group co-founder David Rubenstein warned on 'Mornings with Maria' that the Fed is attempting to avoid stagflation and not raising interest rates 'too much' amid soaring inflation.
DAVID RUBENSTEIN:
I do agree with [former Fed Chair Bernanke] that the situation is different than the 1970s. I worked in thethen, and it was a much different situation, a different type of economy. We got interest rates up to about 19%. Inflation was about 15%, and the economy was completely different. Now we're faced with a serious situation and not quite what we had in the 1970s… I think the Fed has the ability and much greater knowledge than the Fed probably had about the economy in the 1970s.
We have the ability to avoid a hard landing or a recession, but it's not easy, when you're increasing interest rates, you never can stop it exactly when you want to stop it… the Fed has telegraphed what it's going to do, and I think it's probably going to follow through with that… it could be a challenge in getting the exact right mixture of higher interest rates without destroying...
and hurting employment… nobody's perfect in this. I think the Fed has a pretty good handle on [this]… Jay Powell is somebody the market has a lot of confidence in.
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