BlackRock CEO: The United States is very close to a recession and may have already fallen into one

On Friday, Larry Fink, CEO of the world's largest asset management giant BlackRock, warned that the United States is on the brink of recession. In an interview, he stated:

"I think we are very close to a recession now, and we may already be in one."

This assessment aligns with his views expressed earlier this week at a New York Economic Club event, where he revealed that several corporate CEOs also shared similar concerns, believing that the U.S. may be in a recession.

Tariff Delay Fails to Alleviate Market Anxiety

Although the Trump administration postponed some tariffs for 90 days on Wednesday, Fink believes this move is insufficient to restore market confidence in the economy:

"I think you will see a broad economic slowdown until there is more certainty. And this so-called 90-day pause actually means longer-term, higher uncertainty."

While current hard data such as employment and retail are temporarily stable, consumer and business confidence surveys indicate a general weakening of confidence. Fink analyzed that part of the economic resilience may be due to consumers making purchases in advance out of concern for tariffs, which could mask potential economic weakness.

However, he also emphasized that despite the current economic pressures, he does not believe the U.S. is facing a financial crisis, and he expects major economic "trends" such as artificial intelligence to continue.

Mixed Results in BlackRock's Q1 Financial Report

Fink's latest remarks came after BlackRock released its financial performance for the first quarter of 2025.

The mixed report showed that BlackRock's Q1 net profit fell 4% year-on-year to $1.51 billion, with earnings per share down 8% to $9.64. However, the adjusted earnings per share were $11.30, exceeding the expected $10.08. Q1 revenue grew 12% year-on-year to $5.28 billion, slightly below the expected $5.29 billion.

In terms of assets, Q1 net inflows reached $84 billion. As of the end of March, total assets under management approached $11.6 trillion.

On Friday morning, BlackRock's stock price fell over 2.1% before rising nearly 1.8%. As of Thursday's close, BlackRock's stock price has declined about 16.2% year-to-date, underperforming the S&P 500 index's decline of 10.4% during the same period.

In the financial report, Fink wrote that investor sentiment is tense:

"Clients' uncertainty and anxiety about the future of the market and economy have become the main theme of our current communications."

He pointed out that the current market atmosphere is reminiscent of significant historical moments such as the 2008 financial crisis, the initial crash during the pandemic in 2020, and the inflation surge in 2022. Fink stated:

"These are all periods of profound changes in policy and market structure, but whenever this happens, BlackRock maintains close communication with clients, and our significant growth often occurs after these phases." Risk Warning and Disclaimer

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