The ominous estimate that inflation will continue to run at a high rate for several more years was expressed by the head of the largest fund manager in the world, Larry Fink, arguing that the problem is mainly due to supply chain bottlenecks.
“Inflation has been exacerbated by pandemics and lockdowns around the world. It is driven more by supply,” BlackRock CEO, who manages about $ 9.6 trillion in assets, told Bloomberg Television.
According to Larry Fink, the US Federal Reserve does not have the tools on its own to correct logistics problems in the economy, which he says will maintain market volatility.
At the same time, he estimated that inflation is expected to remain higher in general during the transition of the economy to more environmentally friendly sources.
Larry Fink also argued that it should not be the responsibility of fund managers to ensure that the companies in their portfolios do their duty to protect the environment.
“I do not want to become an environmental policeman. It is wrong to ask the private sector to take on such a role,” he said.
Finally, for the stock market, Larry Fink estimated that the pressures will continue.
“We will have several periods of fear” that will create more turmoil in the market, he said, noting, however, that at present “we have not seen huge changes in the distribution of assets by our investors.”
Source: Capital
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