WHEN: Today, Friday, April 14, 2023
WHERE: CNBC’s “Squawk on the Street”
Following are excerpts from the unofficial transcript of a CNBC exclusive interview with BlackRock Founder, Chairman & CEO Larry Fink on CNBC’s “Squawk on the Street” (M-F, 9AM-12PM ET) today, Friday, April 14th. Following is a link to video on CNBC.com:
All references must be sourced to CNBC.
FINK ON CLIENTS BRINGING DOWN RISK
FINK: We’re seeing more and more clients who are looking at bringing down their risk but keeping their portfolio much more wholistic and a little bit more resilient by having a better foundation of bonds and equities. That’s what’s happening right now and we’re seeing that.
FINK ON SHORTING LIQUIDITY
FINK: Over the last ten years, the number one trade that people made money on was shorting liquidity.
JIM CRAMER: Right.
FINK: I don’t believe that’s going to be the next great trade for the next ten years and shorting liquidity means you got out of bonds and bought more privates and that trade worked. The question is is that going to work now in the next ten years.
FINK ON CAPITAL MARKETS
FINK: We’re seeing an acceleration moving out of the banking system into the capital markets and that continues on. You’re gonna ask the questions, is that good or bad? We could all raise those questions. The large banks are benefitting from this, the large market making banks are benefitting and the capital markets are benefitting from this. And that’s going to be a big societal question. How do we want to navigate this?
FINK ON BANKING SYSTEM
FINK: We need a healthy banking system and we need a healthy capital market system. And that’s what we need, a good mixture.
FINK ON RECESSION
LARRY FINK: No, I don’t see a big recession. I’m not sure we’re going to have a recession in 2023. We may have it in early ’23. It all depends on what is the pathway of inflation of the short run and pathway to the Fed.
FINK ON INFLATION AND PRODUCTIVITY
FINK: I believe inflation is going to be stickier for longer. In other words, I think we’re going to have a 4-ish percent floor in inflation.
FINK: I think that’s going to be the big question with inflation. Where are we going to see the boost in productivity? Because if we don’t, that’s going to be another reason why we’re going to have a stickier inflation.
FINK ON CHINA AND TAIWAN
FINK: Do I believe there’s going to be economic tension that’s going to grow? Yes. But is that imminent? No, but we should expect that.
