The Carlyle Group co-founder David Rubenstein argued that if the Federal Reserve moves to increase interest rates 100 basis points, they would be indicating that they know inflation is much worse than people think, telling “Cavuto: Coast to Coast” they would further “depress markets.”
Rubenstein noted that then-Fed boss Paul Volcker increased interest rates 200 basis points over one weekend without telegraphing or explaining the move.
“Now the world is different.,” Rubenstein said. “They [Fed] telegraph exactly what they are going to do and explain it afterward. 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. 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.
Watch the full interview here.