The former boss of Fed Chief Jerome Powell said inflation is persistent and problematic but should not cause a recession. Powell chose to focus on inflation expectations vs. the data, insisting it was transitory. He dropped the transitory word last December.
The Carlyle Group needs interest rates to stay low as it refinances affiliate debt. Rising interest rates impact the prices Carlyle can get when selling affiliates. Private equity underwriters (PEU) try to sell companies while prices are high (monetizing affiliates).
Falling asset prices brings opportunities to buy companies cheaper. Carlyle has taken over companies via foreclosure (forced or prepackaged bankruptcy) in times of distress.
Carlyle has loads of data from owning thousands of companies and it positioning to make its next round of grotesque profits. Anyone relying on David Rubenstein's words should consider Carlyle's puffery defense for prior failed investments.
Vague statements of corporate optimism or "puffery" cannot be materially misleading because "generalized statements of optimism are not capable of objective verification and reasonable investors do not rely on them in making investment decisions."
Thank CNBC for sharing Mr. Rubenstein's generalized statement of optimism.
Update: Carlyle is in talks to monetize Traxys by selling to the company's management. Traxys is a metals trading house Carlyle acquired in 2014.
Update 6-10-22: Insider Larry Summers said “The Fed’s forecasts from March, saying that inflation would be coming down to the 2s by the end of the year was, frankly, delusional when issued, and looks even more ridiculous today.” Inflation was a hot 8.6% for May. Summers urged the Fed to investigate why officials’ forecasts were “so dramatically” and repeatedly wrong.
