Blackrock CEO Expects Inflation to Persist But No Great US Recession in 2023 – Economics Bitcoin News

Blackrock’s CEO, Larry Fink, stated in an interview on Friday that he does not expect a “major recession” in the United States. However, he believes that “inflation is going to be stickier for longer.” Against the Fed’s target of 2%, Fink predicts that “we’re going to have a 4-story inflation.”

Blackrock clients de-risk portfolios as inflation concerns persist

Larry Fink, chairman and CEO of Blackrock (NYSE: BLK ), the asset manager with more than $9 trillion in assets under management (AUM), predicts that inflation in the United States will persist for a significant period of time. Fink was interviewed on Friday by the hosts of CNBC’s “Squawk on the Street” and stated that he does not expect a major economic downturn in the country.

“I don’t expect a major recession in [United States]”, Fink told the hosts. He also stressed that the significant fiscal stimulus being injected into the country must be “compensated”.

While acknowledging that some sectors of the economy are “weakening”, Fink stated that “other sectors, because of these huge fiscal stimulus, are going to offset some of this.” The Blackrock CEO also discussed inflation, stressing that he thinks it’s “going to be sticky longer. In other words, I think we’re going to have a 4 floor in inflation.”

Regarding a possible recession in 2023, he stated that he is “not sure we’re going to have a recession” and suggested that it could happen in 2024. Fink also expressed confusion over the reaction to the fall of Silvergate Bank, Silicon Valley Bank , and signature bank.

Fink said:

This is not a systemic problem, this is not a problem that is going to have an impact. As we saw today, we had our big banks that had good quarters … performed very well. So I think this is just an example of, you know, when the ocean or the tide goes out, some people are going to be left there.

In mid-March, Fink shared his views on the banking industry following the collapse of three banks, claiming that “we will likely see tighter capital standards for banks.” Fink’s latest assessment, which was shared with CNBC hosts on Friday, coincides with recent comments from Blackrock’s chief investment officer for global fixed income, Rick Rieder.

Rieder expects the US central bank to raise the benchmark interest rate to 6% this year and keep it at that level for a longer period to curb inflationary pressures. During his interview, Fink also informed CNBC that Blackrock’s clients are reducing risk in their portfolios.

“We are seeing more and more clients looking to reduce risk while maintaining a more holistic and robust portfolio by establishing a stronger foundation of bonds and stocks,” explained Fink.

Furthermore, the Blackrock CEO touted the company’s success over the past five years, boasting of having “grown $1.8 trillion in net inflows.” Despite “all this pessimism,” he emphasized that Blackrock grew “more in this first quarter than the first quarter of ’22.”

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2008 Crisis, asset manager, AUM, Banking Industry, Benchmark Rate, Blackrock, Blackrock Banks, Blackrock Fink, bonds, capital standards, CIO, cnbc, economic downturn, stocks, financial markets, financial performance, financial regulation, financial system, Fink Blackrock , First quarter, fiscal stimuli, fiscal stimulus, global interest rate, growth, inflation, inflationary pressure, investment, Larry Fink, net inflow, pessimism, portfolios, recession, Rick Rieder, risk, sectors, Signature Bank, Silicon Valley Bank, Silvergate Bank, Squawk on the Street, American economy, US Federal Reserve

What do you think Larry Fink’s predictions mean for the future of the US economy? Do you agree or disagree with the Blackrock CEO’s assessment of the inflationary environment and the likelihood of no recession in 2023? Share your thoughts in the comments below.

Jamie Redman

Jamie Redman is the news editor at News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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