Blackstone Group: U.S. inflation has returned to the Federal Reserve's target

ChainCatcher news, Blackstone Group's Chief Financial Officer Michael Chae stated that the company is "cautiously optimistic about a soft landing in the U.S.," indicating that this alternative asset management firm bets that the Federal Reserve's efforts to curb inflation will not trigger a recession in the U.S.

Blackstone's own inflation gauge shows that inflation in the U.S. has reached 1.7%, excluding housing costs and incorporating other relevant metrics. Chae noted that this would bring the U.S. "to the Federal Reserve's inflation target."

Chae mentioned that data collected from Blackstone, the world's largest alternative asset management firm, indicates that the labor market has been softening. CEOs of Blackstone's portfolio companies indicated in a June survey that they expect wage growth to slow next year. While the "revenue growth of Blackstone's global portfolio is slowing," these companies have shown "resilient profit margins."

Chae stated, "We are seeing signs of 'animal spirits' returning in the trading markets. If these trends continue, I believe this could lead to a particularly strong market in 2025."