David Rubenstein, co-founder and co-chair of Carlyle Group, expressed concern about the substantial increase in U.S. debt over the years. He noted that when he left the White House under President Carter, the national debt was around $800 billion, but it has since ballooned to approximately $35 trillion. Rubenstein emphasized that the willingness of people to buy Treasury bills has helped sustain this level of debt, but he warned that this might not always be the case.
Henry Wang, founder and president of the Center for China and Globalization, discussed China’s Belt and Road infrastructure initiative and its impact on the global stage. He highlighted the reactions it has generated from other countries, such as the U.S.’ Build Back Better program, the European Union’s Global Gateway proposal, and India’s Indian Middle East economic corridor initiative. Wang praised China for working with both the Global South and developed countries to address global challenges.
John Williams, President and CEO of the Federal Reserve Bank of New York, shared his views on the current state of the economy and inflation. He noted that despite higher interest rates, the economy has not slowed significantly due to a tight labor market and fewer imbalances. Williams acknowledged that inflation has been a challenge but pointed to data suggesting a downward trend.
Williams emphasized the importance of transparency in the Fed’s decision-making process, citing the need to explain their inflation goal and economic projections clearly. He expressed support for the Fed’s 2% inflation target, stating that low inflation is essential for economic prosperity. Williams also addressed the potential impact of a second Donald Trump presidency on the Fed, emphasizing that the institution remains focused on achieving its goals regardless of changes in political leadership.