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Economy Will Grow at 'Muted Rates': Blackstone CEO

High credit default rates and consumer debt will cause the US economy to recover at a slower pace than it did after previous economic downturns, said Steve Schwarzman, CEO of private equity firm The Blackstone Group.

Schwarzman said he expects US GDP to rise about 3.5 percent in the fourth quarter, but the path to a sustainable recovery will likely be uneven, he said.

"That doesn't mean we won't grow," he said. "But it's much more reasonable to expect the economy to grow at much more muted rates."