Carlyle Group Co-Chairman and Co-Founder David Rubenstein announced that he expects the Fed to cut interest rates by 25 basis points in September. Speaking on Bloomberg Surveillance, Rubenstein assessed President Donald Trump's moves that have revived debates about the Fed's independence and the markets' reaction to them. Rubenstein stated that Trump's attempt to remove Fed Board Member Lisa Cook is part of his goal to lower interest rates, saying, “The president wants interest rates lowered and is very determined on this issue. Jerome Powell has also signaled his expectation of a rate cut in his recent remarks.” Rubenstein stated that he didn't expect any surprises in the markets, saying, “I think we'll see a 25 basis point cut in September. I'd be very surprised if there's a larger cut.” Rubenstein emphasized the importance of the Fed's independence, saying that while this process will likely be resolved in the courts, markets were largely unaffected by Trump's actions. Rubenstein, noting that Trump has recently taken unusual steps in Washington, said that his attempt to partner with Intel and his efforts to dismiss Fed members were not unexpected by investors: “Markets don't like uncertainty, but President Trump's style is well-known. Investors have priced in these moves, and the indices are still trading near their peaks.” Rubenstein stated that the FED has been among the most respected institutions since 1913 and that this process will not completely shake confidence in the institution. *This is not investment advice.