Investors could be waiting a long time for the Federal Reserve to normalize interest rates as middle-income wages remain stagnant, BlackRock's Russ Koesterich said Tuesday.
The firm's global chief investment strategist said the wage problem appears to be structural rather than cyclical. Those stubbornly low wages could contribute to an environment in which inflation remains well below the Fed's target.
"What is it that's going to get the Fed off of zero if it's this long-term structural problem that is probably not amenable to monetary policy?" he asked during an interview on CNBC's "Squawk Box."
"There are debates about is it real, or is it a measurement problem in the service-based economy, but what you can probably agree on is it's not going to get fixed by the Fed."