Investing.com -- On Monday, Larry Fink, CEO and Chairman of BlackRock (NYSE: BLK ), addressed the Economic Club of New York with a cautious perspective on the current economic climate, as the market has been in steep decline since U.S. President Donald Trump’s Wednesday tariff announcements. Fink described the economy as weak and did not dismiss the possibility of the market experiencing an additional 20% decline. Despite this, he did not anticipate systemic risk and suggested that, in the long run, the situation could present more buying opportunities than selling.

Fink expressed concerns over American exceptionalism, which he believes has recently been cast aside, and he described the United States as shifting from a stabilizing force to one that may be causing instability. He presented a nuanced view of the future, suggesting that outcomes could range from an economic renaissance to a significant recession. He noted the shift in the U.S. labor market, where only 8% of workers are in manufacturing, with an entry-level salary of around $25 per hour, and he emphasized the potential for job creation in other sectors.

The CEO of the world’s largest asset manager highlighted inflationary pressures, expressing worry that the White House’s policies might be more inflationary than the market expects. He predicted no federal reserve rate cuts and warned that inflation could worsen if all proposed tariffs were implemented. Fink also predicted a weakening dollar and urged the Trump administration to focus on pro-growth policies.

According to Fink, many CEOs believe the U.S. is likely already in a recession. He criticized President Trump’s focus on inflationary and destabilizing policies, which he said have led to increased volatility and could slow down consumption. Fink also pointed out that the market downturn is affecting Main Street and anticipated that companies, U.S. equities, and consumers would all feel the impact. He forecasted more evidence of an economic slowdown over the coming months, with a significant burden being passed on to consumers.

Regarding initial public offerings (IPOs), Fink suggested that companies delaying their IPOs might see valuations drop by 20%. However, he remained optimistic about the resilience of solid companies in the face of market turbulence.

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