(Bloomberg) — Low interest rates are prompting consumers to funnel more of their income into savings, potentially creating a drag on the U.S. economy, said BlackRock Inc.’s Laurence D. Fink.
Years of easy monetary policy have narrowed yields, depressing returns, said Fink, chairman and chief executive officer BlackRock, the world’s biggest asset manager.
“Therefore you have to save more today to get to that annuity stream,” he said at an investor conference in New York hosted by Deutsche Bank AG. While a higher savings rate helps Americans prepare for retirement, it “has a pronounced impact on global demand.”
Fink’s remarks to investors came in a conversation with Deutsche Bank co-CEO Anshu Jain, hours after Goldman Sachs Group Inc.