The reason? The economy is starting to do much better, and companies have $2 trillion in cash on hand, Schwarzman said in a " Squawk Box " interview from the Business Roundtable summit. Companies are now in the phase of the M&A cycle in which they are buying similar kinds of businesses that allow them to take costs out and get positive synergies, he added.
Asked what roll the current low-interest-rate environment will play in dealmaking, Schwarzman said the Federal Reserve's approach to raising rates is a little overrated in terms of its impact.
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"I think they're going to be quite cautious. They've worked since the crisis to make sure the U.S. has got positive momentum economically, and they're not going to stop that voluntarily, I don't think, for some period of time," he said.
A gradual interest rate increase of 50 to 100 basis points will certainly make news, he said, but it will not make a material difference to the U.S. economy.
"Markets will respond on an interim basis, but fundamentally the economy will grow through that. I don't think the Fed will throw us into a next recession," he said.