Saphyre Vice Chairman Wolfgang Koester explains his excitement in the fin-tech sector, looks ahead to this weeks earnings and previews the October jobs report.
BlackRock CEO Larry Fink said on Tuesday he did not believe the Federal Reserve would cut interest rates as some analysts expected, due to “embedded” inflation.
During the annual Future Investment Initiative (FII) meeting in Saudi Arabia, the head of the world’s largest asset manager was asked how much he sees in the central bank’s monetary policy by the end of 2024.
BlackRock CEO Larry Fink during a television interview in New York, Jan. 12, 2024. (Photographer: Victor J. Blue/Bloomberg via Getty Images / Getty Images)
“It’s fair to say we’re going to lose at least 25 (basis points), but that being said, I believe we have the most inflation in the world that we’ve ever seen,” Fink said.
The Fed cut rates by 50 basis points in September, lowering the federal funds rate for the first time in four years to a range of 4.75% to 5%. After the cut, JPMorgan analysts predicted two more rate cuts by the central bank by the end of this year, with further cuts in 2025.
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The Labor Department reported that inflation fell in September to the lowest level in three years, although it came in a bit warmer than expected, with the consumer price index up 2.4% from last year.
People shop at a grocery store in Brooklyn on July 11, 2024, in New York City. (Photo by Spencer Platt/Getty Images/Getty Images)
Overall, the report showed signs that inflationary pressures on the US economy continue to ease, although rates remain above the Fed’s 2% target.
High inflation is creating a lot of financial stress for many US familieswho are forced to pay more for daily necessities such as food and rent.
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“We have a government and a policy that is increasing – whether it’s immigration, our sales policies – all this, no one is asking the question: At what cost?” Fink said at the FII event.
Blackrock headquarters in New York, US, on Monday, July 1, 2024.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| BLK | Company BLACKROCK INC. | 986.22 | +12,15 |
+1.25% |
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“Historically, we were a consumer-driven economy, where cheap products are the best, a constant way to politicize,” he continued. “Today, I think we have government policies that are focused on inflation and that being said, I think we’re not going to see interest rates as low as people are predicting.”
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