BlackRock CEO Fink says the US and China headed to trade war

BlackRock CEO Larry Fink.AP

BlackRock CEO Larry Fink said that the United States is on a path to a full-fledged trade war against China.

“We’re going to have a full-fledged trade war,” with U.S. tariffs on all Chinese goods, if policy continues on its current path, Fink said on Thursday at the New York Times DealBook conference.

Fink added that issues related to Treasuries were his “biggest worry in the world today.”

“We may have a supply problem and it’s not the Federal Reserve that is raising interest rates…they’re raising on the short-end, but that has not bearing on the long-end. We’re still seeing long-end pretty muted, but the biggest threat today is the $670 billion deficit this year.”

“What I worry about is to sell out debt, especially at the long end will mean higher interest rates becuase people will demand a higher premium and that’s one of the fundamental issues that can mute and can harm our equity markets in the long-run.”

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