In a stark warning, Larry Fink, CEO of BlackRock, the world's largest asset manager, highlighted that the US economy is currently "weakening as we speak." Speaking at the Economic Club of New York, Fink emphasized that recent market disruptions, exacerbated by Donald Trump’s tariffs, are significantly impacting both Wall Street and Main Street.

Fink noted a notable downturn across several sectors, attributing it to the swift market decline, including a 20% drop over just three days. He stressed that these developments are causing many to reassess their consumption habits, contributing to what he described as "a real downturn" in economic activity.

The CEO expressed concerns about the lasting effects of tariffs, predicting long-standing ripple effects on the economy. He pointed out that the S&P 500 index has already plummeted 17.3% from its peak in February, triggering widespread margin calls on hedge funds and further exacerbating market volatility.

Despite the current market turbulence, Fink suggested a cautious optimism, framing the situation as a potential buying opportunity rather than a reason for panic. However, he warned that further declines could still be on the horizon.

Fink’s remarks underscored broader anxieties among investors about a possible recession, decreased profitability, and increased corporate default risks. The audience at the event audibly reacted to his comments, reflecting the gravity of the current economic uncertainties.

Regarding monetary policy, Fink expressed skepticism about expectations of a Federal Reserve interest rate cut, citing emerging inflationary pressures exacerbated by the proposed tariffs. He also declined to speculate on the possibility of a "Trump put," which would involve the president reversing tariffs in response to continued market declines.

As BlackRock's own shares have fallen 25% from their peak in January, Fink’s assessment highlights the widespread unease among financial circles about the trajectory of the US and global economies under current trade policies.