KKR's Kravis Warns of Persistent Inflation Threat in Global Economy

Henry Kravis, co-founder and co-chairman of KKR, expressed concerns about the impact of "sticky" inflation on the global economy during a recent interview at the Berlin Global Dialogue. Kravis stated that he believes inflation is likely to remain a persistent issue, citing its "stickiness" as a major concern. He also emphasized that KKR is confident in Europe and sees opportunities in defense and security sectors. Kravis' comments on inflation come at a time when many economists are warning about the potential for a prolonged period of high inflation. He noted that while some may be worried about the impact of inflation on the economy, he is not. "Inflation is a fact of life," Kravis said. "It's not something that we should be worried about, but rather something that we should be managing." He added that KKR is well-positioned to navigate the current economic environment and take advantage of opportunities in various sectors. Kravis also discussed the impact of the global tariffs war on the economy, stating that globalization is not ending but is being "rewired." He noted that while some may be concerned about the rise of protectionism, he believes that it is a natural response to the changing global economic landscape. "Globalization is not going away, but it's being rewritten," Kravis said. "We're seeing a shift towards more regional trade agreements and a greater emphasis on domestic production." In addition to his comments on inflation and globalization, Kravis also discussed KKR's confidence in Europe. He noted that the company sees opportunities in various sectors, including defense and security. "Europe is a key market for us, and we're confident in its prospects," Kravis said. "We're seeing a lot of opportunities in defense and security, and we're well-positioned to take advantage of them." Kravis' comments on private credit also generated interest. He noted that while some may be worried about systemic risk in the private credit market, he is not. "We're not worried about systemic risk in private credit," Kravis said. "We're seeing a lot of opportunities in the space, and we're well-positioned to take advantage of them." He added that KKR is committed to maintaining a high level of discipline and oversight in its private credit investments. The comments from Kravis come at a time when many investors are closely watching the global economy and the impact of various factors on the market. His views on inflation, globalization, and private credit are likely to be of interest to investors and economists alike. KKR is a leading global investment firm with a long history of success. The company has a diverse portfolio of investments across various sectors, including private equity, real estate, and credit. Kravis has been a key figure in the company's success, and his comments on the current economic environment are likely to be closely watched by investors and economists. As the global economy continues to evolve, investors and economists will be closely watching for signs of change. Kravis' comments on inflation, globalization, and private credit provide valuable insights into the current economic environment and the opportunities and challenges that lie ahead.