BlackRock CEO Fink gives Yellen high marks

BlackRock CEO Fink gives Yellen high marks
BlackRock CEO Larry Fink gives Federal Reserve chairwoman Janet Yellen rave reviews for her speech following the Fed's move to raise interest rates.
DEC 21, 2015
BlackRock Inc. chief executive officer Laurence D. Fink on Thursday predicted a slow-growth economy in early 2016 and gave Federal Reserve Chairwoman Janet Yellen high marks for her speech Wednesday following the Fed's move to raise interest rates for the first time in nearly a decade. "She gave the market clarity," he said in an interview Bloomberg Television. "I think the marketplace can be calm, and I think the marketplace will really understand, looking at the numbers, how the Fed will operate." The Fed on Wednesday boosted interest rates for the first time since June 29, 2006, ending an era of rock-bottom rates. The Fed unanimously voted to raise its benchmark interest rate by 25 basis points, and indicated it would hike by about 1 percentage point a year over the next few years. Since the end of 2008, the Fed has kept its benchmark interest rate at a range between zero and one-quarter percent due to the pressures of the economic downturn. (More: Retirees to benefit from Fed's historic rate move) Mr. Fink, who is CEO of the world's largest money manager, predicted the Fed "will be quite slow in raising rates in 2016" and that economic growth will likely slow down. "My view is that the economy is decelerating," he said. "It's not going to grow is as fast as we want. We'll be lucky if we see a 2% economy in the first part of next year." The reason for the slowdown, he said, is that two drivers of growth in recent years — farming and energy — are slowing down. The Commerce Department last month said that the nation's gross domestic product grew at a 2.1% annual pace in the third quarter.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.