Larry Fink Warns of Self-Inflicted Crisis, Persistent Inflation, and Limited Fed Power

BlackRock CEO Larry Fink, in a conversation with CNBC, remarked that the current economic turmoil isn’t the result of a pandemic or a classic financial crisis. Instead, he believes it’s a consequence of choices and actions made over time, calling it a crisis of our own making. He emphasized that unlike previous global shocks, this situation stems more from structural and policy decisions than external events.

Fink also highlighted the importance of securing a robust trade agreement with China, suggesting that a lack of clarity on trade relations continues to weigh on global stability. He warned that the U.S. economy is heading into a phase of deeply rooted or “embedded” inflation, which could prove difficult to reverse. On the bond market, he expressed doubts about the Federal Reserve’s ability to deliver meaningful rate cuts or easing, implying limited policy tools to counter the ongoing inflationary pressure.