BlackRock Chief Executive Officer Larry Fink said the United States is overly focused on monetary policy at the expense of fiscal discipline, remarks that come as President Donald Trump continues to publicly pressure the Federal Reserve to cut interest rates and repeatedly criticizes Fed Chair Jerome Powell.
What Happened
Speaking in an interview with CNBC on Thursday, Fink said the national conversation remains disproportionately centered on interest rates while the country’s rising debt burden receives insufficient attention.
“I’ve always felt we are too preoccupied on monetary policy and not enough conversation about fiscal discipline, fiscal policy,” Fink said, pointing to the U.S. national debt, which now exceeds $38 trillion.
Fink’s comments come amid escalating political scrutiny of the Federal Reserve.
Trump's Criticism Of Fed
President Trump has repeatedly called for rate cuts and has publicly denigrated Powell in recent months, arguing that monetary policy is restraining economic growth.
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While Fink did not reference Trump directly, his comments mark concerns that fiscal deficits, rather than interest rate levels alone, could eventually undermine confidence in U.S. capital markets.
Fink warned that sustained deficits could begin to affect foreign demand for U.S. Treasuries, which serve as the global benchmark for risk-free assets.
He said any erosion of confidence in U.S. fiscal management could lead to a scenario where interest rates remain elevated despite low inflation, driven by financing constraints rather than economic strength.
Department Of Justice Vs Fed
The comments also come against the backdrop of increased scrutiny of the Federal Reserve.
The Department of Justice has confirmed it is conducting an investigation related to Chair Powell, following referrals concerning compliance and oversight matters tied to Federal Reserve operations.
Powell has not been charged with any wrongdoing, and the Federal Reserve has said it is cooperating with authorities.
Despite political and regulatory tensions, Fink said he remains constructive on the broader economic outlook, citing easing geopolitical risks and accelerating growth in global capital markets.
He reiterated that long-term economic stability depends less on short-term monetary adjustments and more on sustained growth paired with fiscal discipline.
BlackRock reported record inflows during the period, reflecting what Fink described as continued global demand for diversified exposure across public and private markets, even as policy uncertainty persists.
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