BlackRock conflicts managed ‘very carefully’

NEW YORK: Any potential conflicts that may arise from having investment giant BlackRock Inc buy corporate bonds and commercial mortgages on behalf of the Federal Reserve (Fed) are being managed “extremely carefully, ” Fed chair Jerome Powell said on Wednesday.

BlackRock, which manages about US$7 trillion in assets, was hired by the Fed in March to steer tens of billions of dollars in bond purchases as part of the US central bank’s efforts to stabilise the bond market amid the economic turmoil caused by the coronavirus pandemic.