By Dawn Lim
BlackRock Inc. Chief Executive Laurence Fink on Monday said he expects the world economy to "recover steadily" from the coronavirus outbreak.
In a letter to shareholders, Mr. Fink said the recovery will have steady momentum because the current market stress doesn't rise to the magnitude of a typical financial crisis. Its roots aren't insolvent institutions and investors collapsing from exposure to risky financial instruments.
Meanwhile central banks and governments worldwide have acted swiftly to shore up markets, Mr. Fink said.
"Their actions are likely to be more effective and work more quickly since they are not fighting against the same structural challenges as they were a decade ago," he said.
Mr. Fink warned that heavily indebted businesses face deep challenges ahead, and that poorly designed stimulus programs could disproportionately shift economic burdens on some individuals.
BlackRock was tapped last week by the Federal Reserve to help steer tens of billions of dollars in bond purchases, a move that puts Mr. Fink and the world's largest money manager under significant scrutiny for how the firm executes the government's response to the crisis.
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