Interest rates are still standing near record lows, but that’s not going to last much longer, says Goldman Sachs CEO Lloyd Blankfein.

And investors are going to pay the price when the reversal comes, he said at a conference Wednesday, according to CNBC.

"One of the big risks that's looming is complacency. People are once again complacent about the low level of interest rates."

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

The 10-year Treasury yield stood at 1.7 percent Wednesday, not too far from its record low of 1.38 percent, set July 25.

The economy is ready to accelerate, which will spark the rate move, Blankfein says. Gross domestic product rose 2.7 percent in the second quarter.

"At some point growth will come back. I think it’s going to come back sooner than people think,” he said. That’s based partly on Blankfein’s conversations with corporate executives, who have shifted their own focus to growth from austerity.

“Now what's going to happen when growth picks up and interest rates rise?” Blankfein asked. “There's going to be a reversal, and people will have losses."

Some bond market players say the Fed’s intention to keep short-term rates near zero until unemployment hits 6.5 percent could bode ill for long-term rates.

“The Fed is losing some of its credibility as an inflation fighter,” Gary Pollack, head of fixed-income trading for Deutsche Bank’s Private Wealth Management unit, told Bloomberg “They will allow inflation to go above the long-term target. That’s disappointing for the market.”

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did