BlackRock CEO suggests that the economy may already be in a recession

be heading towards a recession, the CEO of a prominent investment management firm believes that the country might already be in one. The uncertainty surrounding President Donald Trump’s fluctuating tariff policies has sent shockwaves through the markets, leading to extreme volatility.

Trump’s strategy of announcing tariffs one week and then pausing them the next has resulted in dramatic fluctuations in the market. The initial introduction of “Liberation Day” tariffs triggered historic drops, only for the market to experience significant gains after the announcement of a 90-day pause. However, with some tariffs still in place and others scheduled to return in the future, concerns about the stability of the U.S. economy persist.

Larry Fink, the CEO of BlackRock Inc., expressed his apprehensions about the current economic situation, stating that the U.S. is potentially on the brink of a recession. In an interview on CNBC’s “Squawk on the Street,” he highlighted the prolonged uncertainty due to Trump’s tariff policy, emphasizing the need for more stability to address the economic slowdown.

Fink also pointed out the impact of this uncertainty on BlackRock’s quarterly report for 2025, noting that discussions with clients are dominated by concerns about the future direction of the markets and the economy. This sentiment is shared by other key figures in the financial industry, including Jon Gray, President of Blackstone Inc., who warned about the risks associated with prolonged market volatility.

Despite assurances from Trump’s allies that the situation is under control, many experts remain wary of the lasting effects of the trade war with China. Neil Dutta, head of economics at Renaissance Macro, cautioned against excessive optimism, highlighting the ongoing issues and the need for a resolution to the prolonged uncertainty.

Treasury Secretary Scott Bessent expressed optimism that negotiations with other countries would lead to greater certainty in the coming months. However, the prevailing sentiment among financial experts is one of caution, with concerns about the potential repercussions of the current trade policies and the need for increased stability in the markets.

As the debate over the U.S. economy’s direction continues, the lingering uncertainty caused by Trump’s tariff policies underscores the need for a more consistent and predictable approach to trade relations. The potential consequences of this instability have prompted industry leaders like Larry Fink to raise alarm bells about the nation’s economic future, urging for greater clarity and stability to navigate these turbulent times.