Blackrock CEO Larry Fink said that he fears that US President Donald Trump’s actions are much more inflationary than the market expects, and the economy is “weakening as we speak”. While speaking at an event for the Economic Club of New York, Fink said that many business leaders believe the United States economy is already in a significant downturn.
“Most CEOs I talk to would say we are probably in a recession right now,” he said.
He further said that he thinks the tariff policies of Trump could put upward pressure on inflation and make it difficult for the Federal Reserve to cut interest rates. Fink said that he sees a 0 per cent chance of four or five interest rate cuts this year, and sees a chance of interest rising.
Despite the turmoil in the market, Larry Fink said the weakness does create a buying opportunity over the long run. “I would say in the long run, this is more of a buying opportunity than it is a selling opportunity. That doesn’t mean we can’t fall another 20 per cent from here, too,” Fink said.
Trump announced reciprocal tariffs on its trading partner countries on April 2 which caused markets to plunge in the ensuing days.