BlackRock Inc (NYSE:BLK) CEO Larry Fink said the US is "probably" already in a recession and warned that stock markets could fall another 20% as the full effects of US tariffs and retaliations become clear.
"Most CEOs I talk to would say we are probably in a recession right now," Fink said in a talk at the Economic Club of New York on Monday.
"One thing I would say for sure right now is the economy is weakening," he added, saying US tariffs will lead to higher prices, adding to inflationary pressure.
After global stocks were sent crashing in the days since President Trump unveiled the tariffs, Wall Street finished in calmer fashion at the start of this week, with the Nasdaq just above flat and the S&P down just over 0.2%.
"I see it more as a buying opportunity than a selling opportunity, but that doesn’t mean we can’t go down further," Fink said.
With the near-20% fall in the S&P 500 from its February peak, he said this "doesn't mean we can't fall another 20% from here too".
The fall in stocks was being felt by the 62% of Americans who invest in equities – "the market impact is impacting Main Street," he said.
The fall-out from the tariffs, including stock market worries and more inflation, "is going to freeze more and more consumption, I think we're going to start seeing that really quickly," he added.
Given the outlook for inflation Fink played down the chance of the Federal Reserve cutting interest rates four or five times this year.