"There's a disconnect between modest economic growth and roaring stock market, Blackstone Group Chairman and CEO Stephen Schwarzman told CNBC on Thursday.
"The economy is improving pretty modestly. I think there's a lot of bullishness that feeds on itself," he said in a "Squawk Box" interview. "The real world is moving ahead. But it's not barreling ahead."
Schwarzman added, "When you have an economy that grows at 2.5 percent, 2.75 percent, and a stock market that goes up 27 percent, seems somewhat disconnected."
"It seems a low probability that markets continue going up at 27 percent," he said.
For now, investors are reveling in the clarity from the Federal Reserve, which finally ended the "will they, won't they" guessing game. After its final meeting of the year, the central bank announced that it will taper its $85-billion-a-month bond-buying program by $10 billion.
Stocks rallied sharply on the news Wednesday. The Fed is expected to gradually wind down the program over the next year, but it's still holding $4 trillion of securities on its balance sheet.
—By CNBC's Matthew J. Belvedere"
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