Larry Fink Warns Of Persistent Inflation Risks And Highlights AI Investment Needs

According to Odaily, BlackRock CEO Larry Fink has cautioned that investors may be prematurely concluding that high inflation has ended, which could lead to increased bond yields as prices rise. Speaking at the World Economic Forum in Davos, Switzerland, Fink expressed concerns that the global belief in the peak of inflation is misguided. He stated, "I truly believe we will face a situation of high inflation." Regarding investments in artificial intelligence, Fink highlighted the significant private sector funding required for building data centers. BlackRock is collaborating with Microsoft and others to raise a $30 billion fund, emphasizing the need for private equity markets to focus on the power supply for data centers. "In the short term, we need to be clear that it will primarily be powered by natural gas, in the United States, it is natural gas," Fink noted, adding that the demand for electricity should prompt discussions about the future role of nuclear energy.