Key Words: Democrats Could Deliver A Shock To The Economy, Warns Hedge-fund Billionaire

That’s Stephen Schwarzman, the billionaire CEO of Blackstone Group BX, +0.80%  , warning of the impact higher taxes could have on the U.S. economy.

He also told Bloomberg from the sidelines of the Milken Institute Global Conference on Monday that higher rates would be a drag on growth, though he doesn’t see the Federal Reserve making that mistake at the wrong time.

“I tend to think the people there are not in the business of making mistakes,” said Schwarzman, who led Trump’s economic advisory council before it was disbanded. “The Fed is the guardian of the system... not the enemy of the system.”

Watch the interview:

Earlier this month, Schwarzman laid out his “Marshall Plan,” which is designed to combat the widening gap between the rich and the poor.

It starts with education and giving teachers tax-exempt status. “I think teachers is where the key is,” he said. “We have to address getting the best people. It’s not just money. We also have to make teachers a special class in our society.”

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