BlackRock CEO Larry Fink said on Monday that most other CEOs he talks to believe that the U.S. is already in a recession, but called the moment a "buying opportunity" for those able to maintain their investments in the long run.
Speaking at the Economic Club of New York, Fink said that "the economy is weakening as we speak" and that "most CEOs I talk to would say we are probably in a recession right now." He added that inflation will likely remain high, something that would reduce the chances of rate cuts by the Federal Reserve soon.
Another Wall Street titan, JPMorgan CEO Jamie Dimon, also said that tariffs will fuel inflation and slow down economic growth, adding that "the quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse."
Goldman Sachs also increased its forecast of a U.S. recession, placing the chances at 45%, 10 percentage points more than its previous estimate. It cited "a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty" as a result of the tariffs announcement.
In the document, Goldman analysts said they expected Trump to scale back its announcement, likely as a negotiation tool. However, new tariffs scheduled for Wednesday would lift it more than expected. It added that China's retaliatory tariffs on U.S. exports were also more aggressive than expected.
"It also suggests that the sensitivity of financial conditions to incremental tariffs is rebounding from the moderate levels of early 2025 toward the more outsized levels observed in the 2018-2019 trade war," reads a passage of the note.
However, despite the downturn, the CEO of BlackRock, the largest asset manager in the world, said he believes that "in the long run, this is more of a buying opportunity than a selling opportunity." However, he clarified that this "doesn't mean we can't fall another 20% from here, too."
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