The Federal Reserve's $3 trillion-plus balance sheet is not too big when compared with the entire banking system, Blackstone boss Steve Schwarzman told CNBC on Thursday. That's why he's not that concerned about the central bank's massive bond-buying program, he said.
"When the [financial] crisis started, the U.S. Fed was only about $800 billion," Schwarzman said in a "Squawk Box" interview. "Citibank was about four and a half times the size of our entire central bank. That seems a bit odd to me.
"The idea that the central bank is now at [about] $3 trillion and Citibank is down to around $2.4 trillion still doesn't seem like the central bank is massively scaled to the size of the U.S. banking system in toto," he added.
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As for the record-high stock market, Schwarzman said, "We've come a long way, and we've done it through modest economic growth in the U.S.—almost none in Europe—a decreased level abroad.
"The dominant factor is really record low rates virtually everywhere in the world," he said. Though Schwarzman acknowledging that rates will go higher, he didn't have a timetable.