BlackRock CEO Larry Fink said President Donald Trump‘s efforts to unleash capital in the private sector could have unintended consequences that would hurt the stock market.
“I’m cautiously optimistic. That being said, I have scenarios where it could be pretty bad,” Fink said Thursday on CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland. “I believe if it’ll unlock all this private capital, we’re going to have enormous growth. At the same time, some of this is going to create new inflationary pressures. I do believe that’s probably the risk that is not factored into the markets. I think the bond market is going to tell us where we’re going.”
The 72-year-old chief of the world’s largest asset manager said much will depend on how quickly the private sector can put capital to work. Trump has already touted massive private sector promises to spend in the U.S., the latest example being the Stargate joint venture,…
