DUBAI, United Arab Emirates – December 4: Blackrock CEO Larry Fink spoke at a roundtable discussion titled “Financing the New Climate Economy” during which he described A “new financial landscape” is urgently needed to fund climate investments On December 4, 2023, the global energy transition took place on the fifth day of the UNFCCC COP28 climate conference held in Dubai Expo City, United Arab Emirates. COP28 will take place from November 30 to December 12, bringing together stakeholders including international heads of state and other leaders, scientists, environmentalists, indigenous representatives, activists and others to discuss and agree on the implementation of global Mitigation measures for the impacts of climate change. (Photo by Sean Gallup/Getty Images)
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BlackRock Chief Executive Larry Fink predicted on Friday that the Federal Reserve may still cut interest rates this year but will not achieve its inflation target.
With markets nervous about the direction of monetary policy, the head of the world’s largest currency manager said the central bank was unlikely to hit its 2% target anytime soon. A report earlier this week showed inflation rising at an annual rate of 3.5%.
However, Fink expects the Fed to take some interest rate cuts this year and may have to admit that inflation will remain high.
“When everyone said earlier this year that prominent economists were going to cut interest rates six times, I said maybe two,” Fink told CNBC’s “Squawk on the Street.” “I still said maybe. There are two.”
While the forecast was not unanimous in January and February, it is in line with market expectations that have been recalibrated since the hot inflation data hit this year. Fed officials said they were reluctant to start cutting interest rates until they saw more convincing evidence that prices were rising back toward target.
But Fink said the central bank’s target could be too high or too low, depending on how inflation plays out.
“Inflation has slowed, and we have been saying it will slow. But will inflation slow to the final rate the Fed seeks? I doubt it,” he said. “Do I believe we can achieve stable inflation between 2.8% and 3%? I think that’s a win.”
Fink gave a speech that day black stone The reported quarterly earnings beat Wall Street expectations for profit and revenue. The company also said its assets under management reached a record $10.5 trillion.
