I have a better handle on the sell-off than the Fed

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Between tariffs, rising prices and the flattening yield curve, Starwood Capital Group Chairman and CEO Barry Sternlicht is not feeling too sanguine in regards to the state of the U.S. financial system, he mentioned Wednesday in an interview with Cramer.

“I believe the Fed goes to need to watch out,” he informed the “Mad Cash” host. “The financial system’s not fairly as robust because the quantity indicated.”

One of many actual property investor’s chief considerations was the yield curve, which is so flat as to virtually make borrowing cash at a two-year price the identical as borrowing at a 30-year price.

“It is not what we’re used to, however often, it is a sign of a downturn. I believe it’s a sign of a downturn,” he informed Cramer.

And with a $300 billion stimulus bundle, the tax cuts and the commerce dispute with China on the federal government’s plate, “it’ll be robust” to get a deal with on the scenario, Sternlicht advised.

“What folks do not perceive in regards to the tariffs is you are going to see their impression, I believe, within the first quarter of subsequent yr,” he mentioned. “As a result of the stock was right here — it is on the cabinets, it is within the warehouse, it was purchased with out the tariff. So you are going to have a latent inflation stress out there which the Chinese language try to deflate by knocking their foreign money down.”

Click on right here to observe Barry Sternlicht’s full interview.

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