Larry Fink unequivocally reiterates at the FII, “We are going to see higher interest rates, David….  We will not see a hard or soft landing in 2024.”

Mr. Fink agrees with Mr. Dimon that the environment right now reminds him of the 1970s.  “The 70s was all about bad policy.  Today it’s about bad policy again.”  Inflation surrounds us everywhere, and it’s going to stay, so, “you can do nothing and enjoy a positive return.”  We have about $1Trillion of fiscal stimulus hitting the J-Curve as the Fed is trying to slow things down.  Additionally, 98% of our mortgages are fixed, so the transmission mechanism of higher rates to the economy is slower than the transmission mechanism of U.S. higher rates to the rest of the world (which has more variable rates).  However, he still thinks the Fed will need to raise rates.  

In terms of technological deflation, AI and robotics will start that deflationary cycle but not anytime soon.