Investing.com -- BlackRock Inc (NYSE:BLK) CEO Larry Fink is “petrified in the short term” about the economy amid uncertainty caused by U.S. President Donald Trump’s trade policy. Speaking today in an interview on CNBC, Fink echoed previous statements made at the Economic Club of New York, namely, “I think we’re very close to, if not in, a recession now.”

On Wednesday, Trump announced a 90-day pause on U.S. tariffs for trading partners, which had been in effect for only a few hours before the announcement. The pause is intended to allow countries to negotiate new trade deals with the U.S.

Fink predicts the economy will experience “a slowdown until we have greater certainty.” Furthermore, he argued that Trump’s tariff pause only creates more uncertainty, further driving indecision.

One of the biggest issues companies face is capital allocation, and Fink agreed, “There’s no question CapEx is falling right now until we have a better understanding.”

Despite the uncertainty clouding the U.S. economy, Fink sees no excuse for inaction. He urged companies to “find solutions” to the uncertainty rather than stagnate because of it.

At BlackRock, Fink is as busy as ever, “spending more time with more clients globally.” Companies have been turning to BlackRock and similar firms for help and guidance amid the uncertain state of the global economy.

Many have described Trump’s tariff war as a self-inflicted wound on the U.S. economy. Fink added, “This is not a pandemic; this is not a financial crisis—this is something we created.” He also pointed to the U.S.’s shift from being a global anchor and stabilizer to a global destabilizer.

However, Fink did offer some optimism. He noted that macro trends—specifically AI, data centers, and infrastructure—are unlikely to stop due to the current uncertainty, though he acknowledged potential delays in innovation. “I remain optimistic over the long run,” he said.

Despite the economic uncertainty and confusion, Fink’s belief in U.S. capital remains unwavering, and he cited clients as still motivated to build. “Long term, I’m less worried about some of these issues, but in the short run, I’m petrified,” he concluded.

His comments come after BlackRock reported mixed results for the first quarter of fiscal 2025. The asset management giant beat analyst expectations in earnings per share, well above the consensus at $11.30, but missed expectations slightly in revenue and AUM (assets under management).

Regarding the results, Fink said, “Uncertainty and anxiety about the future of markets and the economy are dominating client conversations.”

The CEO’s words reiterated the theme of the day, as several executives, including JPMorgan Chase & Co (NYSE:JPM) CEO Jamie Dimon and Morgan Stanley (NYSE:MS) CEO Ted Pick, cited growing cautiousness and uncertainty in the economy.

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