Following the US announcement of sweeping tariffs, BlackRock CEO and Chairman Larry Fink offered a sobering assessment of the market and economic outlook, warning of a potential further 20% market decline and expressing concern over the inflationary impact of White House actions. In remarks made today, Fink stated, “I see it more as a buying opportunity than a selling opportunity, but that doesn’t mean we can’t go down further.” This comes on the heels of a significant market downturn, with Fink noting the impacts and potential ripple effects of a 20% drop over just three days on BlackRock’s clients.
BlackRock CEO Sees Zero Chance of Five Rate Cuts in 2025
Fink’s outlook on Federal Reserve policy was equally cautious. He dismissed the possibility of four or five interest rate cuts in 2025, stating he sees “zero chance” of such a scenario. Furthermore, he suggested that a potential interest rate hike by the Federal Reserve under Jerome Powell remains a possibility in 2025.
Expressing deeper concerns about the current administration’s trade policies, Fink warned that the White House’s actions could prove “far more inflationary than markets expect.” These tariffs, targeting almost the entire world, are likely the primary driver behind his inflation concerns.
Adding to the gloomy forecast, Fink declared, “We are probably in a recession right now.”
