Much of the U.S. market focus has been on the Federal Reserve’s more aggressive interest rate hikes as a reason to fear a recession.
But Carlyle Group co-founder and co-chairman David Rubenstein, a billionaire investor and philanthropist, says the economy’s path may be beyond the central bank’s control, and two other global players are more important when it comes to assessing recession risk.
The Fed’s efforts to fight inflation with higher interest rates “can be tricky to know how it will work,” Rubenstein said on Monday in an interview with CNBC from the Aspen Ideas Festival. “Nobody knows how that will work out.”
Nevertheless, the two most significant issues in his view are what’s going to happen with China, including its Covid policy causing the global economy to slow down even more, and the length of the Russia-Ukraine war, which is impacting the energy market.
“Currently, no one has the answer,” Rubenstein said. “I don’t think…
