Investment management firm BlackRock is sounding a recession warning amid the stock market’s turbulent ride. CEO Larry Fink believes that the United States may already be in a recession, citing the prolonged uncertainty caused by President Donald Trump’s trade policy.
The recent announcement of an 90-day pause on reciprocal tariffs has sparked mixed reactions, with some investors seeing it as a reprieve and others viewing it as a lack of certainty. Fink warned that this pause would lead to “longer, more elevated uncertainty,” which he believes will ultimately slow down the market.
Fink’s concerns are echoed by other experts, including Jon Gray, president of Blackstone Inc., who noted that prolonged periods of volatility increase the risk of an economic downturn. Renaissance Macro head of economics Neil Dutta also warned that the current situation is marked by “prolonged uncertainty,” which can have a negative impact on investors.
Despite some assurances from Trump’s allies, Fink and other experts are skeptical about the long-term effects of the trade policy. With some tariffs still in effect and others set to return in a few months, the market remains volatile, and fears of an impending recession persist.
Source: https://www.independent.co.uk/news/world/americas/us-politics/blackrock-ceo-recession-trump-tariffs-b2731889.html