BlackRockLarry Fink, the company's chief executive, said investors may have underestimated the possibility of soaring inflation.

"most people don't have more than 40 years of career, they only see the decline in inflation over the past 30 years," Fink said at a virtual event hosted by Deutsche Bank on Wednesday. "so it's going to be a very big shock."

Fears of rising inflation have infiltrated the US market as the cost of goods such as wood and steel has risen this year. Fink joined first Boston in 1976 and began his career at Qualcomm胀。In March 1980, the US consumer price index rose by 14.8 per cent.

If rising prices become a problem, central banks may have to re-evaluate their policies, Mr. Fink said. The Fed has promised to keep interest rates near zero in the short term and said it would tolerate inflation above its 2 per cent target to make up for a period of time.

'If the Fed changes course, it will be at odds with fiscal stimulus, 'Mr. Fink said.President Joe Biden has proposed additional stimulus measures, including a $1.7 trillion infrastructure spending plan.

"it would be strange to raise interest rates at the same time as a massive fiscal stimulus," Fink said.

The reality of companies adapting to climate change will also cause prices to rise, he said. BlackRock urges companies to disclose how they plan to match the prospect of net zero emissions in 2050.

"if our solution is all about a green world, then our inflation rate will be much higher because we don't have the technology to do it all yet," Fink said. "it will also be a major policy question in the future: if inflation accelerates our green footprint, are we willing to accept higher inflation?"