Blackrock CEO Larry Fink told CNBC on Friday that he thought that the US economy weaken to the possibly negative point of growth.
“I think we are very close, if not in it, a recession now,” said Fink on “Squawk in the street”.
The fears of an economic slowdown increased sharply since President Donald Trump unveiled the widespread prices last week, causing a sale on the stock market. Trump announced on Wednesday that he stopped some of these import levies for 90 days, but this decision is not enough to restore confidence in the economy, Fink said.
“I think you will see, at all levels, just a slowdown until there is more certainty. And we now have a 90 days on reciprocal prices – it means a longer and higher uncertainty,” Fink said on Friday.
Surveys of consumers and business leaders have shown a weakening of feelings in recent months. However, other economic data such as employment growth and retail sales have resisted better. Fink said that consumers may have been full of goods before the threatened prices, which could hide an underlying economic weakness.
Despite his concerns concerning the economy, Fink said he did not think that the United States was in financial crisis and said that “megatons” in the economy as artificial intelligence would still persist.
During an event for the New York Economic Club on Monday, Fink said that other CEOs also thought that the United States is “probably in recession”.
Fink’s latest remarks are taking place after Blackrock announced its financial results in the first quarter. In this press release, the CEO said that “uncertainty and anxiety about the future of markets and the economy dominate customer conversations”.
The asset giant’s financial results were mixed. Blackrock said $ 11.30 in profit adjusted per share for the first quarter, above the $ 10.14 expected by Wall Street analysts, according to LSEG. However, $ 5.28 billion in revenue failed in consensual expectations of $ 5.34 billion.
On the active front, BlackRock said $ 84 billion in net entrances during the quarter and ended in March with almost 11.6 billions of dollars under management.
The actions of the company increased by less than 1% in the morning trade.
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