“It will take a while before we reach three percent inflation”

Larry Fink, Blackrock CEO

The boss of the world’s largest asset manager fears that the high inflation rates have developed into a structural problem.

(Photo: Johnny Milano for Handelsblatt)

Paris Larry Fink, head of the world’s largest asset manager Blackrock, is preparing for permanently higher inflation rates. “Is inflation temporary or more structural? I tend to think it’s structural,” Fink said in an interview with Handelsblatt and three other European newspapers.

Fink warned the major central banks against overly restrictive measures in the fight against inflation. The stability target of two percent pursued by the US Federal Reserve and the European Central Bank is not a value in itself, especially if it has to be bought with an even deeper recession.

In the interview, Fink also talks about the effect of Western sanctions against Russia, why gas as an energy source “will accompany us for another 100 years” and that home office cannot be a permanent solution after the pandemic: “If that were the case, it would be a disaster .”

Read the full interview here

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