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The BlackRock CEO has talked before about the persistence of inflation, for example in June 2025, when he predicted that inflation would stay stuck between 4–5 percent Capital spending on AI data centers could bring back inflation before boosting economy, BlackRock said. The risk is under-appreciated by markets and central Speaking to Bloomberg, BlackRock’s Marilyn Watson said that inflation is still a concern for the market. Specifically, the firm’s head of global fundamental fixed income Marilyn Watson, BlackRock's head of global fundamental fixed income strategy, says the services industry is well supported and inflation is moderating but it's too Marilyn Watson, Head of Global Fixed Income Fundamental Strategy at BlackRock, says the service sector is well supported and inflation is moderating, but it's too Investment giant BlackRock Inc. BLK is making what it calls one of its strongest strategic calls of the moment: Inflation is likely to stay closer to 3% as the world BlackRock Inc. chief executive Larry Fink said investors are too quick to conclude that high inflation is over, raising the prospect that bond yields will rise along with

BlackRock Says Inflation is Still a Concern: What Investors Need to Know

Investment giant BlackRock Inc. (BLK) is sounding the alarm: inflation is likely to stay closer to 3%, marking one of its strongest strategic calls of the moment. Contrary to the prevailing market sentiment, BlackRock believes high inflation isn't over, and this persistent inflation could have significant implications for investors. BlackRock Inc. chief executive Larry Fink said investors are too quick to conclude that high inflation is over, raising the prospect that bond yields will rise along with it.

Speaking to Bloomberg, BlackRock’s Marilyn Watson said that inflation is still a concern for the market. Specifically, the firm’s head of global fundamental fixed income, Marilyn Watson, emphasized the need for continued vigilance. Marilyn Watson, Head of Global Fixed Income Fundamental Strategy at BlackRock, says the service sector is well supported and inflation is moderating, but it's too early to declare victory.

BlackRock's Key Concerns About Inflation

BlackRock's concerns aren't new. The BlackRock CEO has talked before about the persistence of inflation, for example in June 2025, when he predicted that inflation would stay stuck between 4–5 percent. This underscores a long-held view within BlackRock that inflation may prove more stubborn than many anticipate.

One factor contributing to this concern is capital spending on AI data centers. Capital spending on AI data centers could bring back inflation before boosting the economy, BlackRock said. The risk is under-appreciated by markets and central banks, according to BlackRock's analysis.

What This Means for Investors

BlackRock's view on inflation has significant implications for investment strategies. The firm's outlook suggests a need to re-evaluate portfolios and consider assets that can offer protection against inflation's eroding effects. Investors should pay close attention to BlackRock's evolving views on inflation and adjust their strategies accordingly.

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