BlackRock CEO Larry Fink cautious about President Trump’s initiatives to boost private capital

From CNBC: 2025-01-23 09:07:38

BlackRock CEO Larry Fink expressed cautious optimism about President Trump’s efforts to boost private sector capital, warning of potential negative consequences like inflation. Fink highlighted the need for quick deployment of private capital and noted the possibility of elevated interest rates, which could impact the equity market.

Fink emphasized the importance of monitoring inflationary pressures and their impact on interest rates and the equity market. He mentioned the potential for the 10-year Treasury yield to reach 5% or even 5.5% if inflation rises significantly, which could have a “shocking” effect on equities. The current 10-year note yield stands at 4.62%.

At the World Economic Forum in Davos, Switzerland, Fink discussed the potential outcomes of Trump’s initiatives to unleash private sector capital. He highlighted the massive investments being promised, such as the Stargate joint venture, which could see $100 billion immediately invested in artificial intelligence infrastructure in the U.S., with plans for a total of $500 billion.

Read more: BlackRock’s Fink says that the bond market will tell us where we’re going