BlackRock CEO Larry Fink predicted Friday that the Federal Reserve likely will still cut interest rates this year but won’t meet its inflation target.

With markets on edge over the direction of monetary policy, the head of the world’s largest money manager said it’s unlikely the central bank will hit its 2% goal anytime soon. A report earlier this week showed inflation running at a 3.5% annual rate.

Still, Fink expects the Fed to do some reductions this year while it may have to concede that inflation will remain elevated.

“When everybody said we’re going to have six cuts earlier this year, from noted economists, I said maybe two,” Fink said during an interview on CNBC’s “Squawk on the Street.” “I’m still saying maybe two.”

Though that forecast was out of consensus back in January and February, it’s consistent with the recalibrated market expectations since hot inflation readings became prevalent this year. Fed officials have expressed reluctance to start cutting until they see more convincing evidence that the pace of price increases is heading back to target.

But Fink said the central bank may have its sights set too high, or too low as the case might be for inflation.

“Inflation has moderated and we’ve always said inflation is going to moderate. But is it going to moderate to that terminal rate the Federal Reserve is looking for? I feel doubtful,” he said. “Do I believe that we could get a stable inflation between 2.8% and 3%? I’d call it a day and a win.”

Fink spoke the same day BlackRock reported quarterly earnings that topped Wall Street expectations both for profit and revenue. The company also said its assets under management hit a new record of $10.5 trillion.