BlackRock CEO Larry Fink said Friday he thinks the U.S. economy has slowed to the point of growth possibly turning negative.
“I think we’re very close, if not in, a recession now,” Fink told CNBC.
Trump reversed course Wednesday hours after his wave of reciprocal tariffs went into effect, pausing the higher tariffs but keeping a 10% baseline tariff on all imports. Trump said Thursday during his Cabinet meeting that those higher reciprocal tariffs could be back in place after the blanket 90-day pause.
In the meantime, the U.S. president plans to consider deals with trading partners across the globe. Trump said tariffs on China will hit 145% – 125% on top of the previous 20% – after retaliatory measures from Beijing.
Despite Trump’s pause, U.S. markets remain volatile.
“I think you’re going to see, across the board, just a slowdown until there’s more certainty,” Fink said. “And we now have a 90-day pause on the reciprocal tariffs – that means longer, more elevated uncertainty.”
Goldman Sachs recently raised the odds of a U.S. recession to 45% from 35%, the second time it has increased its forecast in a week, amid concerns about an escalating trade war. The White House has largely brushed off recession fears, pointing to the rest of Trump’s economic agenda, which includes deregulation and tax cuts.
