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 charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

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.