Per Forex Live
Blackrock Points Says Central Banks are Causing Recession Instead of Coming to the Rescue | CEO Shares Thoughts About Blockchain
12/5/2022
Blackrock points out how the situation has changed where central banks that used to rescue the economy from inflation are now causing it. In a section called "Living with inflation," it was noted that the situation could echo what happened in the UK.
Recently, Florida announced it would take its $2 billion worth of state Treasury funds elsewhere after receiving backlash for its initial plans to invest in Blackrock, per FT. Out of the $2 billion initially planned to invest in the asset management firm, the state will only be placing $600 million in short-term funds.
Before this, Blackrock made several statements about the state of the economy, first by saying inflation is being driven by shifts in spending and constraints when it comes to production.
Blackrock: "We are in a new world shaped by supply."
The asset management firm highlights how China's lockdowns and COVID caused economic constraints. Blackrock had also indefinitely shelved its China bond ETF as the tension between Beijing and Washington grows, per Reuters.
Blackrock also provides insights into what they think the Feds will do, saying they might pause but not cut rates once the damage finally surfaces. The statement also noted that the Feds would increase rates higher than initial estimates, even at a longer timeline.
Blackrock: "We are tactically underweight DM equities after having further trimmed risk."
Blackrock CEO Larry Fink also gave his thoughts about what happened with FTX, saying that most crypto companies are doomed for destruction. The CEO said they invested $24 million in FTX through a managed billionaire fund, per News.Bitcoin.
Despite being caught up in the FTX mess, Blackrock has $7.96 trillion in assets under management but only allocated $24 million to the now-bankrupt crypto firm.
Despite this, Fink says he believes in the power and impact that blockchain will have in the future. The CEO expresses his thoughts regarding the importance of the technology used in crypto.
Larry Fink: "I believe the next generation for markets and next generation for securities will be tokenization of securities."
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