BlackRock’s Larry Fink sees Fed cutting rates twice this year but missing 2% inflation goal

BlackRock
CEO
Larry
Fink
predicted
Friday
that
the
Federal
Reserve
likely
will
still
cut
interest
rates
this
year
but
won’t
meet
its
inflation
target.

With
markets
on
edge
over
the
direction
of
monetary
policy,
the
head
of
the
world’s
largest
money
manager
said
it’s
unlikely
the
central
bank
will
hit
its
2%
goal
anytime
soon.
A

report
earlier
this
week
showed
inflation
running
at
a
3.5%
annual
rate.

Still,
Fink
expects
the
Fed
to
do
some
reductions
this
year
while
it
may
have
to
concede
that
inflation
will
remain
elevated.

“When
everybody
said
we’re
going
to
have
six
cuts
earlier
this
year,
from
noted
economists,
I
said
maybe
two,”
Fink
said
during
an
interview
on
CNBC’s “Squawk
on
the
Street.” “I’m
still
saying
maybe
two.”

Though
that
forecast
was
out
of
consensus
in
January
and
February,
it’s
consistent
with
the

recalibrated
market
expectations
since
hot
inflation
readings
became
prevalent
this
year.
Fed
officials
have
expressed
reluctance
to
start
cutting
until
they
see
more
convincing
evidence
that
the
pace
of
price
increases
is
heading
back
to
target.

But
Fink
said
the
central
bank
may
have
its
sights
set
too
high,
or
too
low
as
the
case
might
be
for
inflation.

“Inflation
has
moderated
and
we’ve
always
said
inflation
is
going
to
moderate.
But
is
it
going
to
moderate
to
that
terminal
rate
the
Federal
Reserve
is
looking
for?
I
feel
doubtful,”
he
said. “Do
I
believe
that
we
could
get
a
stable
inflation
between
2.8%
and
3%?
I’d
call
it
a
day
and
a
win.”

Fink
spoke
the
same
day


BlackRock
reported
quarterly
earnings
that
topped
Wall
Street
expectations
both
for
profit
and
revenue.
The
company
also
said
its
assets
under
management
hit
a
record
of
$10.5
trillion.