Fink Says Fed on Hold in 2016 as Brexit Hurts Global Growthby
‘Highly probable’ that Fed rates unchanged through December
Fink comments in interview with Bloomberg Television
Larry Fink, chief executive officer of BlackRock Inc., said Britain’s decision to leave the European Union will lead to weaker global growth, making it more likely that the Federal Reserve will not lift interest rates in 2016.
“I am of the opinion that it is highly probable that they’re not going to do any more tightening this year,” Fink, who runs the world’s largest asset manager, said in an interview Wednesday with Bloomberg Television’s Erik Schatzker.
Fink said it was also possible that the Brexit vote would spur European leaders to pursue policies to boost growth and draw the nations closer together. He reiterated the world needed more help from fiscal policy rather than putting all the burden on monetary policy, and Germany in particular had room to spend more.
“This could help fortify Europe and make the European leaders talk about how to make sure the cohesion of the euro zone remains,” Fink said.