BlackRock Executive Warns of 'Regime Change' to Era of Higher Inflation, Lower Growth Due to Limited Central Bank Tools

BlackRock's Hildebrand said IMF should discuss new economic reality where central banks can't support growth by cutting rates as easily.

He said we'll be in a stickier inflation environment where rates can't be cut to respond to weakness.

This is a regime change from past decades when central banks smoothed business cycles via easing.

Hildebrand pointed to more fragmented geopolitics and higher risk premiums than in the past.

The Israel-Hamas conflict shows geopolitical risks and why we may enter a lower growth era, he said.