Recession Looms If ‘Fiscal Cliff’ Not Solved
Listless markets are responding to the increasing possibility that U.S. lawmakers will not prevent a tumble down the “fiscal cliff,” BlackRock CEO Larry Fink told CNBC on Friday.
The summer surge that pulled stocks to multi-year highs appears to have faltered amid growing fears about the global economy, and the chance the U.S. economy will be undermined by a raft of tax increases and public spending cuts early next year. (Read More: What Investors Can Do Until Stocks Rally Again.)
For that reason, Fink told CNBC’s “Squawk Box,” investors and businesses are reacting to the fiscal cliff uncertainty by sitting on their wallets.
“CEOs today are pensive about what to do next. They’re just sitting back, they’re not hiring as much [and] they’re probably not spending as much,” the BlackRock [BLK 187.34 0.22 (+0.12%) ] chief said. “There’s a deceleration in the economy, and we all start feeling it.”