Blackrock Inc.’s chief executive officer Larry Fink said most of the CEOs he would speak of to think that the United States is in a recession, warning that stock markets could still decrease when President Donald Trump’s pricing policies destabilize the world economy.
“The economy is weakening when we are talking about,” said Fink, 72, in an interview on Monday at the New York Economic Club, adding that it provided more than an economic slowdown in the coming months.
Inflation is likely to be raised, said Fink, casting a doubt about the reduction rates of the federal reserve several times this year. As an example of concerns, Fink said that he had already heard leaders of the airline on the drop in travel demand.
“Most of the CEOs I’m talking about say that we are probably in recession right now,” said Fink.
The world’s stock markets were struck by a sales stampede last week, wiper billions of values after President Donald Trump unveiled a series of people unexpectedlyscanning and complicatedPrices. Investors have thrown risks and ran to buy bonds, looking for security and betting on the federal reserve reducing interest rates.
“I would say that in the long term, it is more an opportunity to buy than an opportunity to sell,” said Fink. “This does not mean that we cannot yet fall 20% from here too.”
The US dollar is likely to weaken and consumption will probably decrease as consumers and the wider economy adapt to the extent of prices, according to Fink.
In the longer term, Fink said he thought Trump will focus on a growth program.
‘Greater risk’
Marketscontinued to convulse on MondayWhile the VIX index, or gauge of fear, has reached levels of the pandemic era. JPMorgan Chase The CEO of & Co., Jamie Dimon, warned that without rapid resolution, there would be a potentially“Disastrous” fragmentationlong -term economic alliances of the country.
Even before last week’s sale, Fink commented on economic anxiety that permeates the economy. There is more discomfort on the economy than “any time in recent memory”, itsaid in his annual letterto investors last month.
In January, Fink said that the conviction that we “exceed the high point of inflation” is “the biggest riskWe have the world.
Blackrock managed 11.6 billions of dollars in assets on December 31, and the company has engaged nearly $ 30 billion on a trio of acquisitions in the past year to push further on the private markets. The company will publish its results in the first quarter on April 11.
This story was initially presented on Fortune.com
