Larry Fink, CEO of BlackRock, expressed concerns about the U.S. economy, stating that growth may turn negative soon. In an interview with CNBC, Fink mentioned that the U.S. economy might already be in a recession, or very close to it.
His assessment aligns with rising fears of an economic slowdown, particularly in the wake of President Donald Trump’s announcement of tariffs last week. Despite some temporary relief in the form of a 90-day pause on these tariffs, Fink believes that uncertainty remains high, contributing to a broad economic slowdown.
Tariff Uncertainty Fuels Market Volatility, Masks Economic Weakness Behind Stronger Surface Indicators
The announcement of tariffs by President Trump last week has led to a significant sell-off in the stock market. Although Trump temporarily suspended some of these tariffs for 90 days, Fink suggested that this measure was insufficient to restore confidence in the economy. The extended period of uncertainty, he explained, was likely to weigh on economic growth. He pointed out that the pause in reciprocal tariffs only prolonged market anxiety, hindering the possibility of an immediate economic rebound.
Larry Fink Warns of Looming Recession as Tariff Uncertainty Clouds U.S. Economic Outlook
While consumer sentiment and business outlooks have shown signs of weakness in recent months, certain economic indicators like job growth and retail sales have remained strong. Fink suggested that consumers might have been stocking up on goods ahead of the threatened tariffs, which could be masking deeper economic vulnerabilities. However, despite these mixed signals, he maintained that a slowdown seemed imminent, and it would continue until there was more clarity regarding the economic outlook and trade policies.
Fink Optimistic About AI and Long-term Trends Amid Economic Uncertainty and Mixed Results
Despite his concerns about the near-term economy, Fink remains optimistic about certain long-term trends. He emphasized that while the U.S. might be facing a slowdown or recession, “megatrends” such as the rise of artificial intelligence (AI) would continue to shape the future of the economy. Fink suggested that these overarching technological developments would persist, even amidst economic uncertainty, offering hope for future growth despite the immediate challenges.
Fink’s comments came shortly after BlackRock’s announcement of its first-quarter financial results. The asset management firm reported adjusted earnings of $11.30 per share, surpassing analysts’ expectations. However, its revenue of $5.28 billion fell short of the $5.34 billion consensus estimate.
Despite this mixed performance, BlackRock saw significant inflows, with $84 billion in net inflows during the quarter, bringing its total assets under management to nearly $11.58 trillion. The company’s shares rose by 2.3% following the release of the results, signaling investor confidence in its long-term prospects.
