Blackstone's Byron Wien says S&P 500 will still rise to  3,000 by year-end despite Fed hikes

  • "At the beginning of the year, I said the market would reach 3,000 on the S&P 500 and it will do that in spite of Fed rate hikes," says Byron Wien.
  • His comments come ahead of an expected rate hike from the Federal Reserve later on Wednesday.
  • The S&P 500 entered Tuesday's session at 2,915.56, about 2.9 percent from Wien's target.
Byron Wien
Olivia Michael | CNBC
Byron Wien

The S&P 500 will rise another 3 percent to 3,000 before the end of 2018 even as the Federal Reserve likely raises rates twice more before year-end, Byron Wien said Wednesday.

The U.S. economy "is in a very powerful position right now," Wien, a vice chairman at Blackstone, told CNBC's "Squawk on the Street." "At the beginning of the year, I said the market would reach 3,000 on the S&P 500 and it will do that in spite of Fed rate hikes."

Wien made his comments ahead of the U.S. central bank's latest announcement on monetary policy. The Fed is widely expected to raise overnight interest rates by 25 basis points, or 0.25 percent. The central bank is also forecast to hike again in December, according to the CME Group's FedWatch tool.

A higher overnight rate makes it more expensive for financial institutions to borrow money from the Fed, a cost they typically pass to their customers, including companies and individuals. This could lead to stocks falling as it makes it more difficult for companies to borrow money and fuel growth.

Still, Wien said we will "reach 3,000 on the S&P 500, driven by earnings and a strong economy." The broad index closed at 2,915.56 on Tuesday.

Wien has been on Wall Street for more than 50 years and is one of the most widely followed figures in the investing community. His annual list of 10 market surprises is required reading on Wall Street.