CEOs think US is ‘probably in recession right now’, says BlackRock’s Larry Fink

NEW YORK – BlackRock chief executive Larry Fink said most CEOs he talks to think the United States is in a recession, warning that stock markets could decline further as US President Donald Trump’s tariff policies destabilise the world economy.

“The economy is weakening as we speak,” Mr Fink said in an interview on April 7, adding that he foresees more of an economic slowdown in the coming months.

Inflation is likely to be elevated, he added, casting doubt on the Federal Reserve cutting rates multiple times in 2025. As an example of worries spiking, Mr Fink said he has already heard from airline executives about the decline in travel demand.

“Most CEOs I talk to would say we are probably in a recession right now,” said Mr Fink.

Global equity markets have been hit with a stampede of selling, wiping out trillions of value after Mr Trump unveiled a raft of unexpectedly sweeping and complicated tariffs.

Investors dumped risk and raced to buy bonds, seeking safety and wagering on the Federal Reserve cutting interest rates.

The US dollar is likely to weaken and consumption will probably decline, as consumers and the wider economy adjust to the magnitude of the tariffs, according to Mr Fink.

Still, the chief of the world’s largest asset manager said stock market weakness since the tariff announcement on April 2 was “more of a buying opportunity than a selling opportunity” in the long run and did not pose systemic risks.

“That doesn’t mean we can’t fall another 20 per cent from here too,” he said.

Other Wall Street leaders also raised the alarm as markets convulsed. 

JPMorgan Chase CEO Jamie Dimon warned that trade wars could have lasting negative consequences in his annual letter to shareholders.

“The economy is facing considerable turbulence,” Mr Dimon wrote. “We are likely to see inflationary outcomes... Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

Billionaire fund manager Bill Ackman, who supported Mr Trump in his presidential bid, said the tariffs could lead to an “economic nuclear winter”. He urged the President to pause the tariffs while renegotiating trade deals.

He said on X that the tariffs would stymie business investment and consumer spending and “severely damage” the US’ reputation for years.

Hedge fund founder Boaz Weinstein said an economic “avalanche” has just begun. Credit spreads could easily widen as economic uncertainty potentially leads to a severe recession, Mr Weinstein said. “I’m very concerned about a crash,” he added.

Meanwhile, investor Stanley Druckenmiller said in a post on X that he did not support tariffs exceeding 10 per cent.

And hedge fund manager James Chanos said “this escalation threat is a very big deal”, after Mr Trump on April 7 threatened another 50 per cent tariff on Chinese imports. BLOOMBERG, REUTERS