BlackRock CEO Fink does not see inflation as transitory

BlackRock CEO Fink does not see inflation as transitory
BlackRock CEO Fink does not see inflation as transitory

NEW YORK  – BlackRock Inc Chief Executive Larry Fink said he does not see inflation as transitory and that the U.S. Federal Reserve will have to react to higher inflation numbers. 

  “I am not calling for 1970’s inflation but I just think we are going to have above 2% inflation .. probably closer to 3.5% to 4.0%,” Fink said in an interview with Reuters. 

  “Does that mean the Federal Reserve will have to change policy? I think so,” said Fink who, as head of the world’s largest asset manager, is viewed as one of the most influential investors in the world. 

  A rapid rise in prices has left investors wondering whether inflation is likely to peak soon as economies emerge from the cloud of disruptions caused by the coronavirus pandemic, or if higher inflation is here to stay. 

  Federal Reserve Chairman Jerome Powell has repeatedly stated that higher inflation https://www.reuters.com/business/us-lawmakers-likely-press-powell-feds-hawkish-turn-2021-06-22 will be transitory, noting that he expects supply chains to normalize and adapt. 

  “Over the next few years we are going to see more focus on jobs, more focus on reshaping our manufacturing platforms, our supply chain delivery. These are going to be a little more inflationary,” Fink said. 

  One major worry facing investors is how an overheating economy amid a faster reopening could force the Fed to pare back its ultra-loose monetary policies, seen as supportive of riskier assets, sooner than expected. 

  Fink said the Fed raising interest rates 50 or 100 basis would not “be that bad or disrupt the equity market.” 

  “It’s really about how they implement changes more than if they now recognize that maybe inflation is a little above their target,” he said. 

  The biggest rise in U.S. consumer prices in 13 years has intensified investor https://www.reuters.com/article/us-usa-markets-inflation-analysis/analysis-investors-pivot-to-powell-after-more-hot-u-s-inflation-data-idUSKBN2EJ25Tfocus on messaging from the Federal Reserve, with the central bank’s chairman set to speak before Congress on Wednesday. 

  (Reporting by Saqib Iqbal Ahmed; Editing by Chizu Nomiyama)

Source – https://finance.yahoo.com/news/blackrock-ceo-fink-does-not-135524014.html

RSS Latest Press Release

  • Smart Toilet Market Size to Reach $15181.4 Million by 2027
    Global Smart Toilet Market is valued at USD 7452.1 Million in 2020 and Anticipated to reach USD 15181.4 Million by 2027 with a Growing CAGR of 10.7% over the forecast period. Global Smart Toilet Market: Global Size, Trends, Competitive, Historical & Forecast Analysis 2021-2027, Rising adoption of innovative hygiene technologies such as UV lighting, supportive […]
  • Ideal Keepsake Boxes Add an Extra Touch to Saving Beautiful Memories
    Dallas, TX: November 29, 2021 – Family business Wayfaren is delighted to announce the release of its beautifully understated Keepsake Boxes - an ideal gift for loved ones to safely store treasured memories.   Their Keepsake Boxes, available in either maple or walnut, are thoughtfully designed and meticulously crafted for those who don't want to sacrifice style […]
  • Guru Printers Provides Exceptional Service in Sheet Labelling
    Los Angeles: November 29, 2021 – When it comes to branding your business in the right way, Guru Printers have developed a series of eye-catching solutions to enable companies to stand out from competitors.   With over a decade of printing experience, the Los Angeles-based company has created a robust line of printing services to meet […]
  • Plasterfix Australia Delivers Professional Plaster Solutions for Home and Business
    Alexandria NSW – Plasterfix Australia has increasingly become the go-to plastering services company for businesses and homeowners who are looking for a professional and perfect finish.   Plasterfix is anchored by the skills of master craftsman Pedro Pires, who has been honing the craft of plastering for 30 years. He learnt from his father, who passed […]