- Larry Fink believes the U.S. economy is likely already in a recession due to rising uncertainty.
- BlackRock reported strong earnings per share but missed revenue expectations in Q1.
- Despite concerns, BlackRock saw $84 billion in net inflows, with assets under management nearing $11.6 trillion.
BlackRock CEO Larry Fink isn’t exactly sugarcoating the current state of the U.S. economy. Speaking with CNBC on Friday, he said it straight: “I think we’re very close, if not in, a recession now.”
That comment, dropped casually during an appearance on Squawk on the Street, comes after a hectic stretch in markets, largely set off by President Trump’s sweeping new tariffs. While the White House hit pause on some of those levies for 90 days earlier this week, the move hasn’t really settled investor nerves, according to Fink.
More Uncertainty, Not Less
“There’s just too much up in the air,” he explained. “The 90-day pause — it’s not resolution, it’s just more waiting. And that kind of lingering uncertainty keeps slowing things down.”
Surveys of both consumers and business leaders have been flashing warning signs for months, showing clear dips in confidence. But curiously, broader economic data like job numbers and retail sales have held up — at least for now. Fink floated the idea that this might just be people stocking up ahead of more potential tariffs, which could be hiding deeper problems under the surface.
It’s Not 2008, But It’s Not Great Either
That said, Fink doesn’t believe this is another 2008-type crisis. He remains optimistic about long-term drivers of growth like artificial intelligence and tech innovation. Still, short term? He’s not feeling great about it.
Earlier this week, at an Economic Club of New York event, Fink mentioned that many CEOs he’s spoken with feel the U.S. is “probably in a recession already.” His message Friday just reinforced that sentiment.
BlackRock’s Earnings: A Mixed Bag
In BlackRock’s Q1 earnings report released Friday morning, Fink noted that “uncertainty and anxiety about the future of markets and the economy are dominating client conversations.” Despite the gloomy tone, the company actually posted better-than-expected earnings per share at $11.30, beating Wall Street’s $10.14 forecast. But revenue came in light — $5.28 billion vs. the expected $5.34 billion.
$11.58 Trillion Under Management
On the bright side, BlackRock added $84 billion in net new assets during the quarter, bringing total assets under management to nearly $11.58 trillion. Yeah, trillion with a “T.”
As for the stock? BlackRock shares were trading slightly up — not a massive jump, but a green number nonetheless.
