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Larry Fink CEO of BlackRock is not believing in this current rally the stock market rally that has been supported by a potential stop of monetary tightening right in the last meeting the Federal Reserve did not raise rates anymore meaning monetary tightening stops meaning risk on assets could go up in price again now in this interview over here Larry Fink talks about the FED policy he talks about how he expects another one percent raise in the Target rates and I'm sure if that really was to happen this would be a surprise for the market a rate hike or rather four rate hikes right we need 0.25 with every hike it would definitely cause a sell-off in the stock market let's have a quick look at this interview section together Larry as we as we look at the broader Market here right we have come out of a bank crisis uh there's a many many crisis fit or something like a little mini didn't feel many to the banks that went under three of them yes but the the very issues that put those Banks under whether it was Bank Management in relation to higher interest rates have not gone away now we've got the roller coaster coming right at Commercial Real Estate yes are there more banks that you foresee failing whether they are the Regionals we just talked to David Rubinstein at the top of the show and he he thinks maybe in a couple of years we will see some of these go away we have 4 400 Banks we are the we have more banks in the United States than any country in the world we believe in local banks so we have a strong foundational belief that local banks are good but the half 4400 maybe is too many uh let you framed it perfectly I believe interest rates are going to continue to go higher I think the Federal Reserve is going to have to do minimum number two but maybe as much as four more times four more rate 25 basis points 25 base points another 100 base of points I actually believe inflation is stickier and more structural and so I I see a future of higher interest rates higher interest rates is going to create more stress and Commercial Real Estate commercial real estate is the largest asset category of regional Banks and so they there may be stresses that's a problem but the first three Banks did not have stress on on credit they had stress on on their mismatch of their assets and liabilities for more rate hikes an increase of another percentage point because of sticky inflation that's systemic I don't really see the sticky inflation of course in the official numbers we are still relatively High we are at four percent but if you look at the in official numbers when we look at inflation rates that are calculated on daily new prices so not just on random housing surveys but an actual Market data we have a different number we've got 2.33 percent of inflation this is according to trueflation.com it uses the same bus skit as the U.S government does so same constituents but the data is updated more frequently the data sources are potentially more reliable and so every day we get a new inflation estimate on trueflation and 2.3 percent doesn't look like bad sticky inflation to me right this is declining very very constantly 2.33 is not a problem at all four percent would be but even with four percent I don't really see the room of another hike of another percentage point because the target rate is currently at 5 to 5.25 the official inflation rate is lower than that and historically when the inflation rate was lower than the interest rate that tended to be the time when interest rates did not rise further we simply just stayed at the level for a while so I don't really know why the head of BlackRock is saying this if there are other kinds of interest in the background that play a role here I simply disagree with inflation being sticky but let's discuss this together on telegram you can join us here at bitcoin's ready Channel simply search for this term within the telegram app or click the links down below looking forward to chatting with you bye-bye
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