(Just The News)—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.
