Episode summary
Fed Chair Powell Has Done a Good Job, Rubenstein Says
The David Rubenstein Show
· · Hosts: David Rubenstein
Summary
David Rubenstein said the World Economic Forum was defined by a leadership transition, with more CEOs present than before and President Trump dominating attention because people were waiting for a dramatic announcement that never came. He also said Commerce Secretary Howard Lutnick’s message was consistent and that the administration appears comfortable with him in the job.
Rubenstein’s main economic argument was that the U.S. economy remains in decent shape despite political uncertainty. He said growth is pretty good, inflation is under control, and unemployment is tolerable, adding that the country has not had a recession under Jay Powell’s leadership. In his view, Powell has handled rate increases and cuts well and has done a good job communicating the Fed’s actions in plain English.
On markets and investment, Rubenstein said foreign investors want predictability and may pull back if U.S. policy keeps changing. He noted concerns about a weaker dollar, deficit questions, and the possibility of a shutdown, but said business leaders are generally supportive of the federal government’s direction because regulation is lighter and M&A decisions are easier to get.
Key takeaways
- Rubenstein said the U.S. economy is still in good shape, with growth pretty good, inflation under control, and unemployment tolerable.
- He argued Jerome Powell has done a good job because the Fed has not overseen a recession during his tenure.
- Rubenstein said foreign investors want predictability and may hesitate if U.S. policy keeps changing or the dollar weakens.
- He said many CEOs support the administration’s direction because regulation is lower and mergers and acquisitions are easier to approve.
Notable quotes
“RIGHT NOW I WOULD SAY THE U.S. ECONOMY SEEMS TO BE DOING PRETTY WELL. I THINK GROWTH IS PRETTY GOOD”
“INFLATION IS UNDER CONTROL, RELATIVELY SPEAKING. UNEMPLOYMENT IS AT A TOLERABLE LEVEL”
“WE HAVE NOT HAD A RECESSION UNDER JAY POWELL'S LEADERSHIP”
“TO HIS CREDIT HE EXPLAINS WHAT HE IS DOING AND PEOPLE CAN UNDERSTAND IT”
How the episode opens
David joins us now for more. To see you. At the infamous dinner last week we bumped into you at the world economic forum.
You were in the room when commerce secretary howard lutnick delivered that speech. How controversial was it? David: well, it was controversial, I suspect, but he didn't think it was.
It was the welcoming dinner from the chair of the world economic forum, which is cochaired for an interim period of time by two people. They had about five speakers who spoke, and howard lutnick was the last speaker who spoke. It was something that got people's attention.
Annmarie: is it curious that he was the one to deliver this message? The first time ever met howard lutnick was at davos years ago. He was talking about the global elite.
No offense, but wasn't he part of one that now he's saying -- he is saying he disowns? David: he is a unique figure, and I think he has gotten a lot of leeway by the president to negotiate these deals and I think he is enjoying the job. That would be my impression.
I cohosted a lunch with dena powell later in the week and he came to that lunch and spoke as well. His message is pretty consistent, so I think he is not likely to change and he is happy in the job and the president seems to be happy. Annmarie: that is a diplomatic answer.
What did you make of this year's davos? David: it was a transition, because class schwab, who built it, was no longer there. So, they had new leadership.
I think there were more ceos than they had ever had before. Virtually every european leaders showed up. And the president of the united states shows up it tends to dominate the news and a lot of people stood watching president trump's speech and everybody was waiting for the punch line, and the punchline people were expecting did not show up, which is that he was going to use military force.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fed chair powell
- inflation
- economy
- carlyle group
- bloomberg surveillance
Companies and tickers mentioned
- CG
- Carlyle Group
- Bloomberg
Watch the episode
Watch “Fed Chair Powell Has Done a Good Job, Rubenstein Says” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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