Making Money host Charles Payne discusses Wall Streets interpretation of President Donald Trumps tariffs.
BlackRock CEO Larry Fink said that the stock market could see declines deepen by another 20% amid uncertainty over President Donald Trump’s tariffs and that CEOs are telling him they think the U.S. economy is likely already in a recession.
“Most CEOs I talk to would say we are probably in a recession right now,” Fink told the Economic Club of New York on Monday. Tariffs are expected to make a wide variety of products more expensive, exacerbating inflationary pressures that have been persistent in recent months.
Despite turmoil in the market, Fink said that weakness does create a buying opportunity over the long run despite the potential for further declines.
“I would say in the long run, this is more of a buying opportunity than it is a selling opportunity. That doesn’t mean we can’t fall another 20% from here, too,” Fink said.
BLACKROCK CEO FINK’S LETTER TO INVESTORS DUMPS DEI, TOUTS EXPANSION OF MARKET ACCESS
BlackRock CEO Larry Fink said CEOs he talks to think the U.S. has already entered a recession. (Hollie Adams/Bloomberg via Getty Images / Getty Images)
“The economy is weakening as we speak,” Fink said, adding that he sees the economy slowing further in the coming months with inflation likely to be elevated.
Given his concerns about inflation, Fink said he sees no chance that the Federal Reserve will cut interest rates four or five times this year due to the outlook for inflation, which could be made more challenging as tariffs take effect and foreign governments retaliate.
Trump’s tariff announcement on April 2 caused markets to plunge in the ensuing days, with the Dow Jones Industrial Average, S&P 500 and Nasdaq composite all down more than 9% in the past five trading days and more than 10% over the last month.
GOLDMAN SACHS INCREASES RECESSION PROBABILITY, WARNS OF FURTHER DOWNGRADE IF MORE TARIFFS TAKE EFFECT
BlackRock put in a bid to buy two ports at the Panama Canal from a Hong Kong-based firm. (Justin Sullivan/Getty Images / Getty Images)
Fink also discussed BlackRock’s bid to buy a pair of ports at the Panama Canal along with dozens of other global ports from Hong Kong-based firm CK Hutchison.
He said the deal faces nine more months of regulatory review from the Chinese government, which has been critical of the transaction, which would see BlackRock acquire the ports of Balboa and Cristobal at the Panama Canal plus 43 ports in 23 other countries.
Ticker Security Last Change Change % BLK BLACKROCK INC. 817.50 -5.12
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The deal is valued at $22.8 billion, and the companies have emphasized that the deal was purely commercial in nature amid geopolitical concerns about China’s investments in facilities around the Panama Canal.
Reuters contributed to this report.
