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Tariffs will reduce consumption, Fink says

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CEO sees no chance of five US interest rate cuts this year

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Panama deal may face nine more months of review

By Tatiana Bautzer and Ross Kerber

April 7 (Reuters) -

BlackRock ( BLK ) CEO Larry Fink said stock markets could

fall 20% farther as steep U.S. tariffs lead some investors to

believe the U.S. economy may already be contracting.

"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. The tariffs will lead to higher prices, adding to

inflationary pressure.

Still, the leader of the world's largest asset manager said

stock market weakness since the tariff announcement on Wednesday

was "more of a buying opportunity than a selling opportunity,"

in the long run and did not pose systemic risks.

"That doesn't mean we can't fall another 20% from here too,"

he said.

Fink was among the first Wall Street executives to weigh in

publicly on the market meltdown after U.S. President Donald

Trump announced steep new tariffs last week. On Monday, Trump

threatened another 50% tariff on Chinese imports, pushing the

S&P 500 toward a 20% drop from its February high.

Fink said stock market declines are hurting average

people and will affect their spending.

"The reality is 62% of Americans now invest in equities

-- the market impact is impacting Main Street," he said. The

turmoil "is going to freeze more and more consumption, I think

we're going to start seeing that really quickly."

The Trump administration could offset slowing

consumption by focusing on deregulation and pro-growth policies,

Fink said, citing the potential for mergers among large banks.

Fink said he sees no chance the Federal Reserve will cut

interest rates four or five times this year given the inflation

outlook.

He expressed concern the U.S. could lose its place as the

leading capital market.

Regulatory review of BlackRock's ( BLK ) deal with Hong

Kong-based CK Hutchison for

control of important

ports near the Panama Canal could take nine more months,

Fink said.

Saying the deal was driven by commercial interest rather

than geopolitical considerations, Fink added he discussed the

transaction with U.S. policymakers and was optimistic it would

be approved.

Asked about succession at BlackRock ( BLK ), Fink said he is

ready to step down and retain his chairman role for short period

when the next generation of leaders is ready.

"They think they are not ready yet," he said.