The American economy suffers from a dangerous slowdown and may face stagnation

Black Rock CEO, Larry Fink, said that many business leaders in the United States believe that the American economy is currently going through a dangerous slowdown, which threatens an economic recession, according to CNBC.
The stagnation of the American economy “became true”
Speaking during an event for the New York Economic Club, Fink stated: “Most of the executives I spoke to say that we may now pass a stagnation.”
He added: “One of the CEOs said that the aviation industry is similar to a bird trying to fly inside a coal mine, and this bird has already entered into illness.”
Also read: Morgan Stanley: America is the most affected by Trump customs definitions
Tramp
Fink warned that the customs policies pursued by US President Donald Trump may impose escalating pressure on inflation, which will make it difficult for the Federal Reserve to implement interest rates as it usually does during stagnation periods.
There is no hope to reduce interest
Fink pointed out that the expectations for reducing interest rates frequently during the current year seem to be far -reaching, saying: “The idea that the federal reserve will reduce interest four times this year it seems very excluded. There is real concern about the high inflation, and this may lead to raising interest rates to higher levels than it is currently.”
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Expectations in the futures market market
The price of the futures market for federal reserve funds – according to the Fedwatch tool – indicates that traders expect a reduction by at least one percentage point by the end of 2025, which is equivalent to four reductions by 0.25%.
A possible effect on stock markets
Fink pointed out that the American stock markets may be exposed to further decline by up to 20% if the United States imposes exorbitant customs duties, especially with the escalation of inflationary pressures in a way that exceeds the expectations of the markets.