Blackstone CEO Larry Fink warns: The US is overly focused on monetary policy, while fiscal discipline is being overlooked

Source: Yellow Original Title: BlackRock CEO Larry Fink warns that the US is “too focused” on monetary policy while political pressure on the Fed increases

Original Link: https://yellow.com/es/news/el-ceo-de-blackrock-larry-fink-advierte-que-ee-uu-está-“demasiado-preocupado”-por-la-política-monetaria-mientras-aumenta-la-presión-política-sobre-la-fed BlackRock CEO Larry Fink stated that the United States is overly focused on monetary policy while ignoring fiscal discipline. These comments were made amid President Donald Trump continuing to publicly pressure the Federal Reserve to cut rates and repeatedly criticize Fed Chair Jerome Powell.

What’s happening

Fink told CNBC on Thursday that the national dialogue remains overly centered on interest rates, while the country’s growing debt burden receives insufficient attention.

“I’ve always believed we are too worried about monetary policy, and there’s not enough discussion about fiscal discipline and fiscal policy,” Fink said, noting that US national debt has now exceeded $38 trillion.

Fink’s comments come as the Federal Reserve faces increasing political scrutiny.

Trump’s criticism of the Fed

President Trump has repeatedly called for rate cuts and has publicly demeaned Powell in recent months, claiming that monetary policy is hindering economic growth.

While Fink did not directly mention Trump, his comments reflect concerns that the fiscal deficit, rather than the level of interest rates itself, could ultimately undermine confidence in the US capital markets.

Fink warned that ongoing deficits could begin to affect foreign demand for US Treasuries, which are considered the benchmark for global risk-free assets.

He stated that any erosion of confidence in US fiscal management could lead to a scenario where, despite low inflation, interest rates remain high—driven by financing constraints rather than a robust economy.

Justice Department investigation into the Fed

These comments also come amid increased scrutiny of the Federal Reserve.

The Department of Justice has confirmed that an investigation related to Chair Powell is underway, involving referrals concerning compliance and oversight issues related to Fed operations.

Powell has not been charged with any crimes, and the Fed said it is cooperating with authorities.

Despite political and regulatory tensions, Fink expressed a constructive outlook on the overall economic outlook, citing easing geopolitical risks and accelerating growth in global capital markets.

He reiterated that long-term economic stability depends on a combination of sustainable growth and fiscal discipline, rather than short-term monetary adjustments.

During this period, BlackRock reported record inflows, reflecting the continued demand for diversified exposure to global public and private markets, as Fink mentioned, despite ongoing policy uncertainties.