BlackRock CEO Larry Fink is reportedly warning that President Trump’s new shift into nationalist-style economic policy may stoke a new wave of inflation.
Speaking at the CERAWeek conference – and energy markets conference run by S&P Global – Fink says markets are currently discounting inflation, and that US industries will likely experience higher costs in the next six to nine months, Reuters reports.
[adinserter block="1"]Fink suggests that the potential for millions of migrant workers to be deported and the subsequent shrinking of the labor supply could contribute to inflation.
“I think if we all are becoming a little more nationalistic – and I’m not saying that’s a bad thing, you know, it does resonate with me – that it’s going to have elevated inflation.”
Are we going to have enough workers to harvest this now? I’ve even told members of the Trump team that we’re going to run out of electricians that we need to build out AI data centers. We just don’t have enough.”
Commenting on the tariffs, Fink says,
“When I go to Washington, when they talk about these policies, at what cost are you willing to tolerate that?”
Fink’s comments come after BlackRock, the largest asset manager in the world with over $11.6 trillion in total assets, led a consortium to acquire CK Hutchison, a company that operates in over 43 ports across 23 countries, including the Panama Canal.
The CEO has previously touted Bitcoin (BTC) as a legitimate inflation hedge, and earlier this year at the World Economic Forum (WEF) event in Davos, Switzerland, said the flagship crypto asset could run as high as $700,000 in the event that sovereign wealth funds start allocating.
“If you’re frightened of the debasement of your currency or you’re frightened of the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome those local fears.
And so I’m a big believer in the utilization of that as an instrument, and so if that becomes true and you see that it could be a proper hedge against hope securities or equities, the question is, could you see it be a 2% or 5% allocation?
I was with a sovereign wealth fund during this week and that was the conversation. Should we have a 2% allocation? Should we have a 5% allocation? If everybody adopted that conversation, it would be $500,000, $600,000, $700,000 per Bitcoin.”
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