The boss of the largest asset management firm in the world has repeated his warning the US is on the brink of recession if not already there. If BlackRock Chief Executive Larry Fink’s reading proves correct, it would be a huge blow to US President Donald Trump, who only last week vowed his trade tariffs would make America wealthy again.

Asked if the US will fall into negative growth, Mr Fink told CNBC: “I think we’re very close if not in a recession now… I think all the uncertainty is making everyone pause. Everyone is waiting to see.

“I think you’re going to see, across the board, just a slowdown until we have more certainty. We now have a 90 day pause of the reciprocal tariffs, that means longer, more elevated uncertainty.”

BlackRock’s CEO was speaking after Mr Trump announced a pause to his tariff rates on scores of countries, which will still be subject to a 10% threshold levy. He made similar remarks four days ago. Mr Trump has said the US is in a period of transition.

The US leader did not extend the same pause on tariffs to China, with which the United States has triggered a trade war as both sides hike their rates. At the time of writing, the US rate on Chinese goods stood at 145% while China’s levy on US goods was 125%.

Mr Fink’s assessment of the US economy comes at the end of a week in which stocks on Wall Street have swung between gains and losses amid fears the escalating trade war between the world’s two largest economies will result in a global economic slowdown.

The prices of longer-term Treasury bonds, which are essentially IOUs from the US government, have also fallen, counter to their history. Treasurys have long been held as one of the safest possible investments in the world.

The drop in prices for Treasurys in turn sent their yields higher, because investors are demanding to get paid more for the risk of holding them.

Higher yields raise pressure on the stock market and push up rates for mortgages and other loans extended to US households and businesses. This will slow the economy.

Meanwhile, sentiment among consumers in the US has plunged this month, the fourth consecutive month of declines.

A preliminary reading of the University of Michigan’s closely watched consumer sentiment index fell 11% on a monthly basis to 50.8, the lowest since the depths of the Covid pandemic. Over the past year, sentiment has tumbled 34%.

Joanne Hsu, director of the survey, said the decline was “pervasive and unanimous” across age, income, education, region and political affiliation.

The share of respondents expecting unemployment to rise in the coming months increased for the fifth month in a row and is now the highest since the Great Recession in 2009.

White House press secretary Karoline Leavitt said Americans should trust in Mr Trump as he executes his tariffs plan.

She told reporters: “As he said, this is going to be a period of transition. He wants consumers to trust in him, and they should trust in him.”

Mr Trump wrote on his Truth Social platform: “We are doing really well on our TARIFF POLICY. Very exciting for America, and the World!!! It is moving along quickly.”