Billionaire David Rubenstein Says The Fed Is Unlikely To Hike Rates by 100 Basis Points

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David Rubenstein
David Rubenstein

The Federal Reserve is unlikely to tackle hot inflation with a massive rate hike of 100 basis points at this week’s policy meeting, as a hike that big would disturb investors and result in further worry about elevated consumer prices, Carlyle Group co-founder David Rubenstein told Fox Business. 

“The Fed has been telegraphing 75 basis points. If they were to go to 100 basis points, I think it would be shocking to the market,” Rubenstein said in a televised interview on Monday

“I know some percentage of people in the market, 14% or so, think it might be 100 basis points, but I think they wouldn’t want to shock the market that way. So if they were going to do 100 basis points, I think they would have telegraphed it by now,” said Rubenstein, whose latest book “How to Invest: Masters on the Craft,” was released last week. 

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The Fed will begin meeting on Tuesday with a policy decision due Wednesday. It has hiked the fed funds rate four times in 2022 to a range of 2.25% to 2.5%, including two consecutive increases at three-quarters of a percentage point.