Blackrock, $BLK, CEO Fink has said, "I don’t think inflation will get back to 2% anytime soon"

Blackrock, $BLK, CEO Fink has said, "I don’t think inflation will get back to 2% anytime soon."

BlackRock CEO Larry Fink suggested on Friday that the Federal Reserve is likely to cut interest rates this year but may fall short of reaching its inflation target.

Amid market uncertainty regarding monetary policy, Fink, who heads the world's largest money manager, expressed doubt that the central bank will achieve its 2% inflation goal in the near future, especially with recent data showing inflation running at a 3.5% annual rate.

Fink anticipates some rate cuts from the Fed this year but believes the central bank may have to accept that inflation will remain elevated.

While many economists earlier this year predicted as many as six rate cuts, Fink disagreed, suggesting only two cuts are more likely. This forecast, initially against consensus in January and February, aligns more closely with current market expectations, which have shifted due to persistent high inflation. Fed officials have indicated they are hesitant to cut rates until they see stronger evidence that inflation is on a downward trend.

Fink raised concerns that the Fed's inflation target might be overly ambitious. He suggested that while inflation is expected to moderate, it may not reach the level the Fed is aiming for. Instead, he believes that achieving a stable inflation rate between 2.8% and 3% would be a satisfactory outcome.