Carlyle and Blackstone CEOs Warn of Market Volatility Amid Trump's Tariffs and Sustained Inflation at Bloomberg Invest Conference

Executives from major investment firms have expressed concerns regarding the impact of tariffs imposed by President Donald Trump on the U.S. economy and markets. Carlyle Group CEO Harvey Schwartz highlighted that the uncertainty surrounding these tariffs is affecting market conditions, suggesting that they may lead to increased volatility. During a discussion at the Bloomberg Invest conference, Schwartz indicated that the tariffs create more uncertainty than clarity, questioning whether they are a permanent measure or a negotiating tool. He also warned that the ongoing trade war could result in sustained inflation. Blackstone President Jonathan Gray echoed these sentiments, advising investors to be patient as the situation unfolds and to allow 'tariff diplomacy' to take its course. Gray noted a 'pent-up' desire among investors for transactions and IPOs, suggesting that despite the current turmoil, there is optimism for future market activity.