BlackRock CEO Larry Fink Warns of U.S. Recession Amid Trade Policy Uncertainty

BlackRock Inc. (NYSE:BLK) CEO Larry Fink expressed deep concern over the U.S. economy, stating he is “petrified in the short term” due to the uncertainty caused by President Donald Trump’s trade policies. In a CNBC interview, Fink echoed earlier remarks made at the Economic Club of New York, warning, “We’re very close to, if not already in, a recession.”

Trump’s sudden 90-day pause on tariffs, which were newly implemented, has sparked further economic confusion. While the move is intended to open doors for renegotiation with trade partners, Fink believes it adds to the uncertainty that’s already stalling capital expenditure. “There’s no question CapEx is falling right now until we have a better understanding,” he said.

Despite the near-term concerns, Fink emphasized the importance of resilience, urging businesses to navigate the volatility rather than halt progress. “This is not a pandemic or financial crisis—this is something we created,” he said, referring to the tariff-driven turmoil.

Fink highlighted a shift in the U.S.’s global role, describing it as a move from being a stabilizer to a destabilizer. However, he remains optimistic about long-term macro trends such as artificial intelligence, data centers, and infrastructure development, noting these sectors will continue progressing despite potential delays.

Following mixed Q1 results, BlackRock exceeded EPS expectations at $11.30 but fell short on revenue and assets under management. “Uncertainty and anxiety about the future of markets and the economy are dominating client conversations,” Fink added, as executives across the financial sector, including those from JPMorgan and Morgan Stanley, echoed similar caution.

While the short-term outlook remains shaky, Fink reinforced his belief in the resilience of U.S. capital markets and the long-term drive of investors.