{"id":19895,"date":"2023-04-15T20:01:36","date_gmt":"2023-04-15T20:01:36","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/blackrock-ceo-expects-inflation-to-persist-but-no-major-us-recession-in-2023-economics-bitcoin-news\/"},"modified":"2023-04-15T20:01:36","modified_gmt":"2023-04-15T20:01:36","slug":"blackrock-ceo-expects-inflation-to-persist-but-no-major-us-recession-in-2023-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/blackrock-ceo-expects-inflation-to-persist-but-no-major-us-recession-in-2023-economics-bitcoin-news\/","title":{"rendered":"Blackrock CEO Expects Inflation to Persist, but No Major US Recession in 2023 \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Blackrock\u2019s CEO, Larry Fink, stated in an interview on Friday that he does not anticipate a \u201cbig recession\u201d in the United States. However, he believes that \u201cinflation is going to be stickier for longer.\u201d In contrast to the U.S. central bank\u2019s 2% goal, Fink predicts that \u201cwe\u2019re going to have a 4ish floor in inflation.\u201d<\/strong><\/p>\n

Blackrock Clients Reduce Risk in Portfolios as Inflation Concerns Persist<\/h2>\n

Larry Fink, chairman and CEO of Blackrock (NYSE: BLK<\/a>), the asset manager with more than $9 trillion in assets under management (AUM), predicts that inflation in the U.S. will persist for a considerable amount of time. Fink was interviewed<\/a> on Friday by the hosts of CNBC\u2019s \u201cSquawk on the Street\u201d and stated that he does not anticipate a major economic downturn in the country.<\/p>\n

\u201cI am not expecting a big recession in the [United States],\u201d Fink told the broadcast hosts. He also emphasized that the significant fiscal stimulus injected into the country needs to be \u201coffset.\u201d<\/p>\n

While acknowledging that some sectors of the economy are \u201cweakening,\u201d Fink stated that \u201cother sectors, because of these tremendous fiscal stimuli, are going to offset some of that.\u201d The Blackrock executive also discussed inflation, emphasizing that he believes it \u201cis going to be stickier for longer. In other words, I think we\u2019re going to have a 4ish floor in inflation.\u201d<\/p>\n

Regarding a possible recession in 2023, he stated that he is \u201cnot sure we\u2019re going to have a recession\u201d and suggested it might occur in 2024. Fink also expressed<\/a> bewilderment at the reaction to the fall of Silvergate Bank, Silicon Valley Bank, and Signature Bank.<\/p>\n

Fink said:<\/p>\n

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This is not a systemic problem, this is not a problem that\u2019s going to have impact. As we saw today we had our big banks having great quarters \u2026 performing really well. So I think this is just an example of, you know, when the sea or the tide goes out, some people are going to be left there.<\/p>\n<\/blockquote>\n

In mid-March, Fink shared his views<\/a> on the banking industry following the collapse of three banks and asserted that \u201cwe\u2019re likely to see stricter capital standards for banks.\u201d Fink\u2019s latest evaluation, shared with CNBC hosts on Friday, coincides with recent remarks<\/a> made by Blackrock\u2019s chief investment officer of global fixed income, Rick Rieder.<\/p>\n

Rieder anticipates that the U.S. Federal Reserve will increase the benchmark rate to 6% this year and maintain it at that level for an extended period to alleviate inflationary pressures. During his interview, Fink also informed CNBC that Blackrock\u2019s clients are reducing risk in their portfolios.<\/p>\n

\u201cWe\u2019re seeing more and more clients who want to decrease risk while maintaining a more holistic and resilient portfolio by establishing a stronger foundation of bonds and equities,\u201d Fink explained.<\/p>\n

Further, the Blackrock CEO touted the company\u2019s success over the past five years, boasting of \u201cgrowing by $1.8 trillion in net inflows.\u201d Despite \u201call this pessimism,\u201d he emphasized that Blackrock grew<\/a> \u201cmore in this first quarter than the first quarter of \u201922.\u201d<\/p>\n

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2008 Crisis<\/a>, asset manager<\/a>, AUM<\/a>, Banking Industry<\/a>, Benchmark Rate<\/a>, Blackrock<\/a>, Blackrock Banks<\/a>, Blackrock Fink<\/a>, bonds<\/a>, capital standards<\/a>, CIO<\/a>, cnbc<\/a>, Economic Downturn<\/a>, equities<\/a>, Financial Markets<\/a>, financial performance<\/a>, Financial Regulation<\/a>, financial system<\/a>, Fink Blackrock<\/a>, First Quarter<\/a>, fiscal stimuli<\/a>, fiscal stimulus<\/a>, global fixed income<\/a>, growth<\/a>, inflation<\/a>, Inflationary pressures<\/a>, investment<\/a>, Larry Fink<\/a>, net inflows<\/a>, pessimism<\/a>, Portfolios<\/a>, Recession<\/a>, Rick Rieder<\/a>, risk<\/a>, sectors<\/a>, Signature Bank<\/a>, Silicon Valley Bank<\/a>, Silvergate Bank<\/a>, Squawk on the Street<\/a>, US economy<\/a>, US Federal Reserve<\/a><\/div>\n<\/div>\n

What do you think Larry Fink\u2019s predictions mean for the future of the U.S. economy? Do you agree or disagree with the Blackrock CEO\u2019s assessment of the inflationary environment and the likelihood of no recession in 2023? Share your thoughts in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

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

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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