The Federal Reserve’s expected rate cuts are creating “animal spirits” once again in the markets, said Blackstone CEO Steve Schwarzman.
At the World Economic Forum, Schwarzman told Bloomberg that the timing of the Fed’s timing on rate cuts will not be clear, and it will create a “baffling effect” among investors.
The “animal spirits” referred to how emotions will play out in the financial markets.
As Schwarzman expects that the Fed will lower interest rates in 2024 and the markets will eventually pick up after a slow start, he said Blackstone (NYSE:BX) private equity investments have picked up and that the firm is interested in doing deals with European real estate holders that need to dispose of properties to generate cash, Bloomberg reported.
The S&P 500 (SP500) is down 0.46% year-to-date, although up 18.97% from a year ago.
Similarly, the Dow Jones Industrial Average Index (DJI) is down 1.34% year-to-date, but up 9.65% from a year ago.