Larry Fink Warns of Inflation Risks Amid Nationalist Policies and BlackRock’s Panama Port Deal

BlackRock CEO Larry Fink warned that U.S. inflation will remain elevated due to rising nationalist policies, including mass deportations. Speaking at the CERAWeek conference in Houston, Fink highlighted that markets are underestimating inflationary risks, predicting further cost increases over the next six to nine months.

Fink emphasized that policies restricting the labor force, such as deportations, could severely impact industries like agriculture and construction. He cautioned that labor shortages would hinder critical sectors, including AI infrastructure development, as the U.S. faces a shortfall of skilled workers like electricians. He also raised concerns about the economic consequences of proposed tariffs on trade partners, which could drive up import costs.

"When I go to Washington, when they talk about these policies, at what cost are you willing to tolerate that?" Fink said, underscoring the trade-offs of protectionist measures.

Separately, Fink discussed BlackRock’s recent acquisition deal involving CK Hutchison’s 90% stake in a company operating two key ports near the Panama Canal. The transaction, which is expected to close by early April, is part of a broader agreement giving BlackRock access to 43 ports across more than 20 countries.

"This acquisition expands our global portfolio to 100 ports, marking a significant milestone and opportunity," Fink said, noting that the deal also includes six ports near the Suez Canal.

The Panama government has ordered an audit of the 25-year port concession previously held by CK Hutchison, which remains pending.

Fink’s remarks highlight growing concerns over U.S. economic policies and BlackRock’s expanding global infrastructure investments, positioning the firm for long-term growth despite economic uncertainties.