Larry Fink, Chairman and Chief Executive Officer of BlackRock, stated that the U.S. stock market could face an additional decline of up to 20%. His comments were shared during an interview, as reported by Reuters on April 7, 2025. According to Fink, the current trajectory of the market suggests that further losses are likely, especially amid growing economic and geopolitical pressures.
Fink pointed out that many senior executives in the financial sector already believe that the United States is currently experiencing a recession. These views are based on slowing economic indicators and decreased consumer confidence. He emphasized that the prevailing sentiment among his peers reflects a broader concern about economic contraction.
One of the major contributing factors to the risk of a market downturn, according to Fink, is the tariff policy implemented by the United States. He specifically referenced trade tensions between the U.S. and China. On Monday, former President Donald Trump made a public statement regarding new trade measures. Trump announced that he intends to impose additional tariffs of 50% on imports from China. This measure would be enacted if the Chinese government does not withdraw its retaliatory tariffs against U.S. goods.
In addition to Trump’s announcement, a spokesperson from the White House addressed recent rumors about changes in tariff policy. The official denied claims that the U.S. administration is considering suspending tariffs for all countries except China. The statement clarified that the current trade policy remains unchanged and that no such plans are under review at this time.
Fink expressed concern that the new tariffs could lead to a rise in domestic prices. He linked this to ongoing labor shortages, which continue to affect various sectors of the U.S. economy. He noted that the combination of higher tariffs and a tight labor market could significantly increase inflationary pressure. According to Fink, these developments may pose a more serious inflation risk than is currently anticipated by financial markets.
In his comments, Fink also addressed expectations regarding future actions by the Federal Reserve. He stated that there is no current basis to believe that the Federal Reserve will cut interest rates four or five times in 2025. This remark comes amid speculation in financial circles about the central bank’s potential response to economic weakness. Fink suggested that the Fed is unlikely to adopt an aggressive rate-cutting strategy without stronger evidence of economic deterioration.
BlackRock is one of the world’s largest investment management corporations, with assets under management exceeding $10 trillion as of early 2025. The company has a significant influence on global financial markets. Fink, who has led BlackRock since its founding in 1988, is widely regarded as one of the most influential voices in international finance.
Market analysts have been closely watching U.S. economic data for signs of further weakness. Recent reports have shown slowing growth in consumer spending and a decline in manufacturing activity. Meanwhile, inflation remains elevated, driven in part by supply chain disruptions and energy prices.
The latest comments from Fink reflect a growing concern among major financial institutions about the future of the U.S. economy. With trade tensions escalating and domestic challenges mounting, the outlook for the markets remains uncertain.
