Tags: Fed | Fink | bubble | tapering

Fink Says Fed Should Start Tapering in December or Risk Bubble

Tuesday, 12 November 2013 12:05 PM

BlackRock Inc. Chief Executive Officer Laurence D. Fink said the U.S. Federal Reserve should start reducing its unprecedented asset purchases next month or risk creating a bubble.

“I actually believe there’s a need to begin tapering,” Fink said at the annual meeting for the Securities Industry and Financial Markets Association in New York. “That sounds like a bubble to me when you buy over 100 percent of all public and private debt issuance.”

Fink said the Fed bought about 80 percent of all public and private debt issuance in 2012. If the U.S. deficit decreases by about 30 percent as projected, the central bank will be buying more than 100 percent of debt issuance, Fink said. The Fed should continue to keep the interest rate at zero, he said.

© Copyright 2020 Bloomberg News. All rights reserved.


   
1Like our page
2Share
Personal-Finance
BlackRock Inc. Chief Executive Officer Laurence D. Fink said the U.S. Federal Reserve should start reducing its unprecedented asset purchases next month or risk creating a bubble.
Fed,Fink,bubble,tapering
129
2013-05-12
Tuesday, 12 November 2013 12:05 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved