I think we are heading towards at least a 5 percent ten-year yield due to persistently higher inflation – Bloomberg quotes Fink’s opinion. According to the businessman, the world currently underestimates the role of geopolitics in persistently high inflation. Earlier, several American bank leaders warned in the same way, Jamie Dimon, the head of JP Morgan, does not consider it inconceivable that the bond yield would rise to 7 percent in the worst case.
On Thursday, the American ten-year yield rose to 4.68 percent, which is the highest since 2007, and has not decreased significantly since then, standing at 4.57 percent on Friday. The rise in yields was mainly fueled by interest rate hikes by the Fed, and most recently, after the September meeting, the American central bank indicated that high interest rates may remain higher than expected, which gave another boost.
According to Larry Fink, persistently high inflation will not mean hyperinflation, according to the leader of BlackRock, there will be no repeat of the 1970s, when there were double-digit price increases overseas. According to Fink, the US economy will remain strong, and the long-awaited recession will not occur before 2025, if at all.
The financial specialist was also asked if he plans to run in next year’s US presidential election, but the 70-year-old banker jokingly replied that he is too young to compete alongside 80-year-old Joe Biden and 77-year-old Donald Trump.
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