BlackRock CEO Warns: Markets Could Drop Another 20% as Recession Takes Hold

Larry Fink took the stage at the Economic Club of New York with a clear message: the worst may still be ahead. The BlackRock CEO warned that markets could fall an additional 20%, casting a long shadow over investor sentiment.

And yet, Fink didn’t paint a picture of doom. He sees opportunity in the chaos—a chance for patient capital to step in while others retreat, even as inflation chips away at household budgets.

His caution comes amid growing anxiety over Trump’s sweeping tariff policies, increasingly described as a “trade war.” With prices rising and consumers under pressure, the broader economy could soon feel the strain—reminding us that what starts as policy often lands directly on the checkout counter.

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Recession Vibes Are Everywhere

Larry Fink doesn’t mince words. He sees a 20% drop still looming—a sharp echo of Black Monday, 1987.

Blame it on the tariffs. The White House’s new trade posture has rattled both Wall Street and the digital frontier.

Most CEOs I talk to would say we are probably in a recession right now,

Fink told the Economic Club of New York on Monday.

Fink noted that the White House’s sweeping tariff policies have driven a sharp pullback in investor sentiment—impacting both Wall Street and Web3.

• Bitcoin (BTC) has lost more than 5% over the past seven days.
• Ethereum, the largest altcoin, plunged over 16% in the same window.

Financials: ETH/BTC Crashes to 2020 Levels as Markets React to Trump’s Tariffs

Zooming Out: Macro Moves & Market Mood

Fink isn’t calling this a global crisis—but he sees the pain hitting where it hurts: everyday spending. And with inflation still high, the Fed probably won’t slash rates like many hoped.

Read on: China Turns U.S. Tariffs Into a Catalyst for Economic Growth

Goldman and JPMorgan now peg the odds of recession at up to 60%, thanks to slowing economic activity. Still, the recent drop in major indexes? Some say it’s a discount worth grabbing—if you’re in it for the long game.