BlackRock's Hildebrand Sees 'Significant Damage' Getting to 2% Inflation

Philipp Hildebrand, vice chairman at BlackRock, says peak inflation has been reached, but central banks will pay a "very heavy cost to the real economy" to bring inflation back to 2 percent. He speaks with Dani Burger on "Bloomberg Surveillance Early Edition."

[conservativemovement]

Translation: Let them eat cake. We the banks made reckless decisions with all that free money from the Fed, and now that it's time to pay the piper, that pain should be absorbed by the little people at the gas station and grocery store rather than coming out of our lifestyle or way of doing business.

[liambracey]

<The fed sets an inflation target of 2 a year, not 0 because it expects that we will see prices rise but at a stable rate. Next year when the supply chain issues work themselves out, then we will see inflation go back to where it was before covid>

[Soniaobioma-]

As a new beginner in stock markets and Crypto's, every crash is assume to be the outcome of economic drop-off which causes deflation in them all, I started my first investment in crypto with $6, 000. After a couple of 14 business days I had a profit of $37, 500 which is amazing.

[gabbyhernandez]

No pain, no gain. This will sake up and make inexperienced investors sell off everything. The experience led investors will make tons of money and get much richer. Those who panic sell will get destroyed. Paper gains and losses are normal throughout the investing cycle. These days it is most advisable to work with a professional broker who gives guidance and knows when it is most favorable to invest.

[headspaceandtiming]

Mr. H you almost became blunt AND honest in your assessment. That’s refreshing. But how about 14 years of QE, over the top handouts during Covid and unemployment benefits so ridiculous that people don’t have to work or even try to work.
This bill is coming due. I like the reference to the real economy.
Anyone in DC going to listen?

[jerryrichardson]

Excellent commentary, I would add that demographic and broader labor issues can no longer be ignored. Getting back to 2% inflation runs a risk of "breaking" labor and the middle class. Remember, for about 75% of the population real wages have gone down overall over the last _fifty_ years, this has clearly affected labor supply and quality. If I had made more money I would have gone back to college for retraining. I'm a late Boomer with a BA, so you can know where I'm coming from.

[jackalay]

Yeah it is called a recession. The only solution the FED has to fix inflation.

[acmkamos]

Interesting world ..2% inflation will mean 2% growth and 4% inflation will mean 4% growth. Outside this bound, 5% inflation may mean 2% growth and 1% inflation may mean no growth. Between 2-4% inflation the choice maybe at the higher end if you want to preserve employment for the masses and wealth for the top brass. Choosing lower growth may screw both the employment and stock /asset mkt

[jaym]

Why is the 2% inflation good for people that aren't printing money?

[ssuwandi]

Sounds like systematic debt monetization is resulting less than expected if inflation can't be sustained at 2%..

[NitishKumar-jmec]

Larry Stephen basically ruling NY STREETS

[Letsgo]

These guys own the world fyi. Ive also noticed prices coming down right now. They know..

[Voy]

I am sure he will be there to pick up the properties during recession and then rent it out to serfs...

[bob___]

The Fed will probably be satisfied with an inflation rate of 3.x percent (maybe in the low 4s?). One factor no one talks about is the effect the war in Ukraine will have on demand for armaments, which is inevitable even if the war is contained within the borders of Ukraine. Arms production is good for the economy in the short term, but it tends to be inflationary, as well. It is the nature of arms that, when they are needed, they are needed with some urgency because the reason they are needed is that countries don't have them at hand already. That urgency means sharp increases in arms production tend to be debt-financed, and that produces inflation at some point (often after the crisis has passed).

[nikgarcia]

The Wildcards: Trump & Energy Prices

[EddieOTesla]

ESGs pushed by this dude caused it too

[titaniumsandwedge]

Aggregate demand has risen to 2019 levels - not higher. It is lack of supply that is causing inflation. To get inflation down to 2%, demand must be reduced to less than 2019 levels. Hildebrand's point is that this scenario is unpalatable. The Fed probably will accept higher inflation and the let the supply side fix itself over time. This choice will be made later this year.

[jerrymason]

Good video!! Very attractive from start to finish. However, the wisest thing that should be on every smart individuals list is to invest in different streams of income that are not dependent on the government to generate money, especially now business and investing is the easiest way to make money regardless of what party makes it to the oval office.

[aarushiamrita]

Hope I can I start with $1, 000 that's all I have.

[eangucci]

Oh the swiss honest guy, with insider trading and more. Greedy bau