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Larry Fink Ponders If US Economy Is Pointing to Rate Hikes Later

(Bloomberg) — The strength of the US economy is making BlackRock Inc. Chief Executive Officer Larry Fink wonder if the Federal Reserve may have to resort to increasing interest rates later after easing in the short term.

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“I am not calling for that,” Fink commented on a panel at the World Economic Forum in Davos, Switzerland on Friday. “I see probabilities” of a rate hike at some point beyond the next 12 months or so, but he cautioned that such a scenario wasn’t his “core prognostication.”

“The economy is very strong,” he said. “It was very strong in the fourth quarter and the evidence that we are hearing from different corporations is that business is strong already in the first quarter.”

In the short term, the Fed still has room to cut, Fink said, adding that economic data over the next few months will help determine that. The…

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