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Schwarzman Says ‘Animal Spirits’ Are Back on Expectations of Lower Rates
Blackstone Inc. Chief Executive Officer Steve Schwarzman said he expects the Federal Reserve to lower interest rates and sees “animal spirits” returning to the markets as more investors make that bet too. The Fed’s timing on rate declines won’t be clear, creating a “baffling effect” among investors, he said in an interview Thursday with Bloomberg TV on the sidelines of the World Economic Forum. Nonetheless, “the expectation that interest rates are going down is creating animal spirits again,” he said, referring to the role that emotions play in the financial markets. Schwarzman said the pace of ... (full story)