Blackrock CEO Larry Fink Raises Concerns About US Dollar's Reserve Currency Status

Bullion Bite

Larry Fink, CEO of Blackrock, expressed worries about the US dollar's reserve currency status. Speaking at a Deutsche Bank conference, Fink discussed the US economy, interest rates, and the precarious position of the dollar as the world's reserve currency.

Fink expects the Federal Reserve to raise interest rates twice soon, citing persistent high inflation levels. While he acknowledged the economy's resilience, he highlighted potential issues in sectors like commercial real estate. Federal Reserve Chair Jerome Powell had suggested a pause in rate hikes.

Fink dismissed the possibility of a severe economic downturn and expressed confidence that any recession would be mild. He didn't see evidence of a significant reduction in inflation or a hard landing for the economy.

However, Fink expressed serious concerns about the dollar's reserve currency status. He cautioned that the ongoing debt ceiling debate eroded trust in the dollar, citing the risks of a US default and credit rating downgrades. Fink urged efforts to restore lost trust.

Fink's remarks underscore the need for the US to address economic challenges, rebuild trust in the dollar, and protect its reserve currency status. Proactive measures by the government and financial authorities are crucial to maintain stability in the global financial system.

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