Larry Fink, the chairman and CEO of the world’s largest asset manager BlackRock, has warned that U.S. inflation is likely to continue “for a number of years.”
Fink made his comments while speaking with David Westin during an interview on “Bloomberg Markets: The Close.”
Westin stated that the markets had suffered severe turbulence so far this year before asking Fink: โAs you look forward, is there any real prospect it can recoup?โ
โProbably not, totally,โ Fink replied.
He said the market has been recalibrating itself and warned that the Federal Reserve does not have the tools to deal with inflation right now.
“We witnessed a change in policy from the Federal Reserve,” he said.
“We raised short rates.
“We have a recalibration of growth stocks, thatโs principally the majority of the downfall.
“The index is masking some of the problem because some of the index are energy, commodity companies that are up quite a bit.
“If you look at the volatility in the market, itโs spread between winners and losers.
“Itโs pretty broad this year,” Fink continued.
“Weโve taken out a lot of those gains that weโve seen during the COVID years and the two years we were changing our lives, and emphasizing different companies.
“Now, weโre seeing the reverse impact of that.
“Thatโs one of the foundations of it.
“But now, thereโs great recognition that inflation is not transitory, it is probably with us for a number of years.โ
WATCH: