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But the demand for the United States "The bonds are about to diminish, warned Fink.
"At the same time, global bond indices now include more Chinese debt, and one of the big indices will include next year up to 6% of Chinese debt, which will reduce US demand by 2.6%. their debt, "he said. .
"So, all these things are happening.We will see winners, we will see losers – but in the long run, the US Treasury offer is a loser.Now, maybe the States expansion The economy with more purchases will offset some of that, so we'll see how that goes. "
The US federal budget deficit reached $ 799 billion in fiscal 2018, its highest level in six years, as spending rose, the Trump administration announced in October. Already at the six-year high, the deficit could reach $ 1 trillion by the end of 2019, according to the Committee for a Responsible Federal Budget.
Chinese purchases would decline as the Federal Reserve cleans up the mbadive balance sheet accumulated after the financial crisis. The Fed should also raise rates several times this year.
US and Chinese negotiators are currently holding trade talks to resolve a dispute between countries over trade practices that has led both parties to impose punitive tariffs on their imports. The two sides aim to reach an agreement before the deadline of March 1 imposed by US President Donald Trump, who has threatened to impose new tariffs on Chinese products.
As for the future, Fink reiterated his concern: "In the coming years, I think this volume of the Treasury will be a major stake in the future, or, in other words, the deficits in the United States could become a bigger problem. "
CNBC
Fred Imbert
and
Bryan Borzykowski
contributed to this report
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