Investors overreacted to Federal Reserve Chairman Ben Bernanke’s comments that the central bank could reduce monthly bond purchases, Goldman Sachs Group Chief Executive Officer Lloyd Blankfein said.

“The market overreacted,” Blankfein, said today in an interview on CNBC. “The market, of course, took this as ‘Oh my God, it’s the first moment and it was going to be an avalanche.’ And that doesn’t necessarily have to be the case.”

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.