Jamie Spencer
Economic Slowdown Due to Trump’s Tariffs
BlackRock CEO Larry Fink shared his concerns on CNBC Friday, stating that he believes the U.S. economy is on the brink of recession. He noted that the latest tariff measures introduced by President Donald Trump have significantly impacted economic sentiment, leading to a market sell-off. While Trump announced a 90-day pause on some tariffs, Fink expressed doubt that the move would be enough to restore confidence in the economy.
Weakening Sentiment Amid Tariff Uncertainty
As surveys of consumers and business leaders indicate weakening sentiment, Fink suggested that recent tariff uncertainties might be masking underlying economic weakness. Despite a strong start to the year with job growth and retail sales, Fink speculated that consumers may have been stocking up on goods before the anticipated tariffs, further dampening the long-term outlook.
Fink’s Optimism Amid Concerns
While Fink remains concerned about the potential for a recession, he maintains optimism about broader economic trends. He believes that “megatrends” like artificial intelligence (AI) will continue to drive growth, even amid the economic slowdown. Fink’s outlook reflects his faith in innovation, despite the headwinds caused by uncertainty and tariff-driven volatility.
CEO Consensus on U.S. Recession
At an event for the Economic Club of New York, Fink shared that many other CEOs also believe the U.S. is likely in a recession or headed towards one. This sentiment underscores the growing concerns among business leaders about the current economic climate and the impact of tariffs on the global trade system.
BlackRock’s Mixed Financial Results
Fink’s comments came after BlackRock’s announcement of its first-quarter financial results. The company posted adjusted earnings per share of $11.30, which exceeded Wall Street’s expectation of $10.14. However, its $5.28 billion in revenue fell short of the $5.34 billion consensus estimate. On a positive note, BlackRock reported $84 billion in net inflows during the quarter and managed to finish March with $11.58 trillion under management.
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BlackRock, Larry Fink, U.S. recession, Trump tariffs, economic slowdown, consumer sentiment, AI growth, economic uncertainty, first-quarter results, financial markets, BlackRock earnings, tariff impact, market sell-off, CEO outlook, asset management, revenue shortfall, net inflows
