The Carlyle Group expects the Federal Reserve to cut interest rates three times by the end of the year and then pause while it assesses the impact. The private equity firm said it still sees signs of a "vibrant" economy. CEO Schwartz said monetary policy has played a role in curbing inflation and the Fed may only need to cut rates once more next year after the expected rate cut in 2024. Schwartz said that transaction activity in the United States has begun to improve and should continue to increase unless there are unexpected market disruptions. In the first half of this year, Carlyle's allocation and cash-out increased, but both indicators are still far below peak levels.
