BlackRock CEO warns that the U.S. is entering a recession, and U.S. stocks may fall another 20%
BlackRock CEO Larry Fink warned that the United States is entering a recession, and the stock market could fall another 20%. He stated that many business leaders believe the economy is weakening, and high inflation reduces the likelihood of interest rate cuts by the Federal Reserve. Fink mentioned that airline executives reflect a decline in travel demand, indicating increasing economic concerns. He believes that although the market may decline, this could be a buying opportunity in the long run
BlackRock CEO warns that the U.S. is heading into recession, and U.S. stocks may fall another 20%
BlackRock CEO Larry Fink stated that most business leaders he has spoken with believe the U.S. is currently in a recession. He also warned that as President Trump's tariff policies undermine global economic stability, the stock market could further decline by 20%.
Inflation expected to remain high, making multiple rate cuts by the Fed difficult
In an interview with U.S. media on Monday, Fink indicated that the U.S. economy is weakening and is expected to slow further in the coming months. He noted that inflation may remain high, raising doubts about the possibility of the Federal Reserve making multiple rate cuts this year. He cited that airline executives have already reported a decline in travel demand, which is one of the signs of increasing concern. "Most CEOs I have spoken with say we may already be in a recession."
Following Trump's announcement of reciprocal tariffs last week, which shocked the world, investors rushed to sell stocks and other risk assets, turning to the bond market for safety while betting that the Fed would cut rates. Fink said, "In the long run, I think this is more of a buying opportunity rather than a selling moment, but that doesn't mean the market won't fall another 20%."
Consumer fears of contraction will focus on economic growth
Fink believes that as consumers and the broader economy begin to adapt to the impact of tariffs, the dollar may weaken, and consumption may decline, ultimately leading Trump to shift his focus to economic growth.
In fact, Fink had already warned about the economy before the stock market crash. In his annual letter to investors last month, he pointed out that current market concerns about the economy are more severe than "at any time in recent years." He also stated in January this year that the belief that "we have passed the peak of inflation" is the biggest risk globally
