BlackRock Inc CEO Larry Fink said Joe Biden’s victory in the US presidential election should encourage investors, who want stability and an easing of geopolitical tensions.
“They’re looking for a voice that moderates, not a voice that incites,” Fink said at a Bloomberg New Economy Forum event broadcast on Nov 19 in Hong Kong. “President-elect Biden can be that voice of reason.”
The S&P 500 rose 1.2% in the first trading session after Biden was declared the winner of the election. In his acceptance speech, he pledged to unite and heal a country ravaged by the Covid-19 pandemic and partisan hostility.
“The marketplace is encouraged by having a leader now that is more inclusive, a leader that could probably bring a little more global harmony,” said Fink, 68.
BlackRock, the world’s largest asset manager, oversees more than US$7.8 trillion.
As Biden selects key advisers and sets priorities, Fink said the president-elect should consider spending on infrastructure and broadband for all US homes. Fink, who is sometimes floated as a potential candidate to be US Treasury secretary for Democratic administrations, said he’s “very happy at BlackRock” and that he’s “staying in New York for the time being.”
On the debate for additional fiscal stimulus in the US, Fink said concerns over a ballooning deficit can be put to one side, for now, given inflation is low.
“I would say we should worry about it, but it’s not a major issue today,” Fink said. “We need to get growth going. As we get growth, then this deficit, it’ll ultimately be probably north of US$30 trillion. These deficits are going to have less impact if we have a broader, larger economy.”
