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Tariffs. Recession fears. A market on edge. You can't turn on the news without seeing stocks slide and headlines screaming about inflation and economic slowdown.
BlackRock (NYSE:BLK) CEO Larry Fink dropped a heavy dose of reality at the Economic Club of New York on Monday, where he said the quiet part out loud: "The economy is weakening as we speak."
Fink, whose company oversees $11.6 trillion in assets and is one of the most influential voices in global finance, said that in private conversations, "most CEOs I talk to believe we're already in a recession."
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That wasn't all. He pointed to rising inflation, declining consumption, and the drag from tariffs as clear signs of strain—and suggested the Federal Reserve may not be in a position to deliver the multiple rate cuts markets are hoping for.
He warned that "the dollar will be weakened," saying that trade policies and economic uncertainty were already weighing on business activity. While he didn't offer specifics, he said he's already hearing signs of softening demand in sectors like travel and transportation.
Despite all that, Fink struck a cautiously optimistic tone for long-term investors.
"I would say in the long run, this is more of a buying opportunity than it is a selling opportunity," he said, but he didn't sugarcoat the risks in the short term. "That doesn't mean we can't fall another 20% from here, too."
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Fink, who has previously warned about structural issues in the economy—from aging infrastructure to permitting gridlock—reiterated the need for deregulation and private-sector investment.
"We need to be streamlining permitting... exactly all the things I've been writing about, where we need to get the private capital, private markets to start investing in the United States," he said.
While the stock market remains jittery and the VIX Index has surged to levels not seen since the pandemic, Fink emphasized that investors should be watching more than just the day-to-day swings.