Larry Fink of indicated on Monday that numerous executives are convinced the U.S. economy is experiencing a significant downturn.
“Most CEOs I engage with would likely state that we are probably in a recession at this moment,” Fink remarked during an event hosted by the Economic Club of New York.
He elaborated, sharing insights from one CEO who described the airline sector as a “canary in the coal mine,” warning that the metaphorical canary appears to be unwell.
Fink also expressed concerns about how the tariff policies enacted during Donald Trump’s administration could exert upward pressure on inflation, consequently complicating the Federal Reserve’s ability to lower interest rates, a common response during recessionary periods.
“The idea that the Federal Reserve will ease monetary policy four times this year is something I see as incredibly unlikely. I am far more concerned about the potential for persistent inflation, which could lead to a significant increase in interest rates,” Fink commented.
Current market analysis, particularly through the Fed funds futures market, indicates that traders anticipate the central bank may reduce its benchmark interest rate by at least one percentage point by year’s end, which could correlate to four cuts of 0.25 percentage points each, according to the CME FedWatch tool.
As of late 2024, BlackRock reported managing over $11 trillion in assets, distributed across public and private investment portfolios.
Fink’s remarks were covered by Bloomberg Television.
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