BlackRock CEO: The market may face a long-term bottom-fishing opportunity, but a further drop of 20% cannot be ruled out, and doubts remain about the Federal Reserve's ability to cut interest rates multiple times this year
Larry Fink, the head of Wall Street giant BlackRock, warned that the U.S. economy is weakening, and most CEOs he has contacted believe the U.S. economy has already entered a recession. Recently, there has been a panic sell-off in the U.S. stock market, and Fink revealed that, in the long run, it looks more like a buying opportunity rather than a selling opportunity, but there is a possibility that the U.S. stock market could drop another 20%. Additionally, Fink questioned the market's expectations for multiple interest rate cuts this year, revealing that he does not rule out the possibility of the Federal Reserve raising interest rates
BlackRock's CEO warns that most CEOs he has contacted believe the U.S. has fallen into recession, and there is a risk of further declines in U.S. stocks.
On Monday, New York time, 72-year-old BlackRock CEO Larry Fink stated at the Economic Club of New York that the U.S. economy is weakening and may continue to slow down in the coming months. He revealed that most CEOs he has contacted believe that the U.S. has already fallen into recession.
Fink mentioned that he has heard from executives in the aviation industry about a decline in travel demand, which is an example of increasing economic concerns. He warned that a new round of tariffs could suppress the dollar, leading to a potential depreciation of the dollar and a decrease in consumption.
Although the market still expects the Federal Reserve to cut interest rates multiple times in 2025, Fink is skeptical about this and expresses concerns over high inflation and rising interest rates. He even suggested that the possibility of the Federal Reserve raising interest rates cannot be ruled out.
In fact, as early as last month's annual letter to shareholders, Fink mentioned that the current economic anxiety is more severe than at any recent time, and in January of this year, he stated that the view of "we have passed the peak of inflation" is one of the biggest risks facing the world.
Last week, after Trump announced complex and unexpected tariff measures, global stock markets experienced a panic sell-off, with trillions of dollars in market value evaporating. Investors rushed to sell risk assets and turned to bonds for safety, betting that the Federal Reserve would cut interest rates.
Despite this, Fink still stated that he believes this is more of a buying opportunity than a selling opportunity in the long term, and it does not constitute a systemic risk. However, the recent sharp decline in U.S. stocks could have a chain reaction on clients, and the possibility of the market declining further by 20% cannot be ruled out, with 62% of Americans holding U.S. stocks.
Additionally, he stated that the White House must fulfill the growth-promoting policies proposed by Trump during his campaign, such as tax cuts, deregulation, and accelerating the approval process for large infrastructure projects.
As of December 31 last year, Blackstone managed $11.6 trillion in assets and invested nearly $30 billion in three acquisitions over the past year, further expanding its influence in the private equity market. The company will announce its first-quarter financial report on April 11.
On Monday, U.S. stocks experienced a rollercoaster ride in early trading. The three major U.S. stock indices initially plummeted, with the S&P 500 dropping over 4.7%, the Dow Jones falling over 4.4%, and the Nasdaq initially declining nearly 5.2%.
Subsequently, U.S. stocks collectively rebounded, as rumors circulated online that the new U.S. tariff policy would be paused for 90 days, partially alleviating investor sentiment. According to CCTV News, on April 7 local time, several U.S. media outlets reported that Kevin Hassett, director of the White House National Economic Council, stated,U.S. President Trump is considering suspending tariffs for 90 days on certain countries.
The S&P 500 index rose nearly 3.9%, the Dow Jones Industrial Average rose over 2.3%, and the Nasdaq rose over 4.5%. However, the White House later denied that any claims about a "90-day tariff suspension" were fake news. Subsequently, U.S. stocks surged before collectively retreating and turning negative.
