BlackRock CEO Warns Trillions of Dollars Sitting Idle Amid 'Uncertainty'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Larry Fink, CEO of the asset management firm BlackRock, believes investors are holding trillions in cash or low-risk funds as they await clarity on the direction of the global economy.
Speaking at the Saudi-U.S. Investment Forum on Tuesday, Fink said: "There is 12 trillion euros sitting in bank accounts in Europe. In the United States, there's $11 trillion sitting in money market funds."
"When there is uncertainty, you are going to keep more and more money in cash, and that is what we [have] witnessed," he added.
Why It Matters
The U.S. administration has touted progress in trade negotiations, and other deals now being struck in the Gulf, as proof that President Donald Trump's economic vision is beginning to take shape. However, as BlackRock's CEO stated, investors are still exercising caution despite tensions between the U.S. and China easing this week, and both countries agreeing to lower their tariffs on the other's imports for 90 days as they pursue a more comprehensive agreement.
What To Know
The stock market reacted positively to the news of a breakthrough on the U.S.-China front, the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all surging on the joint agreement signed by the pair in Geneva.
The three indexes have largely recouped the losses which followed Trump's Liberation Day tariff announcements—which Fink at the time said "went beyond anything I could have imagined in my 49 years in finance"—all now trading either above or marginally below their closing prices on April 1.
BlackRock Inc. CEO Larry Fink, is interviewed on the floor of the New York Stock Exchange, Friday, April 11, 2025.
BlackRock Inc. CEO Larry Fink, is interviewed on the floor of the New York Stock Exchange, Friday, April 11, 2025.
Richard Drew/AP Photo
However, Fink said that volatility in European and U.S. markets would persist "until we have greater certainty as to what is the new equilibrium," defining this as a consensus about the current "world order." He added that this clarity, which will encourage investors to shift from cash holdings to private investments, would come about "probably sooner than we thought maybe two to three weeks ago."
Fink was one of several CEOs to speak at Tuesday's forum, which coincided with Trump's visit to the kingdom on the first-leg of an investment-focused tour of the Gulf. Other notable attendees included Tesla and SpaceX CEO Elon Musk, Nvidia CEO Jensen Huang, OpenAI's Sam Altman and Amazon CEO Andy Jassy.
What People Are Saying
BlackRock CEO Larry Fink, at the Saudi-U.S. Investment Forum on Tuesday, said: "Yes, we're going to have volatility in the next 90 days, but the big thing that I'll be watching: Are we going to be able to see in every economy the opportunity for more active private investments," he said.
Political economist Veronique de Rugy told Newsweek that the mutual concessions in Monday's agreement between the U.S. and China will bring relief to American consumers and businesses. However, she added that the "long-term sustainability of this truce remains uncertain, as underlying trade tensions persist."
Gina Bolvin, president of Bolvin Wealth Management, said of the U.S.-China agreement: "A win for stocks and a win for investors is a win for Trump because it shows optimism that we are closer to closer to closing a tariffs deal with China because they've come to the table. For any president, the stock market is a barometer of success. And while we can certainly say this volatility was self-inflicted, a trade deal with China is good for America."
What Happens Next?
President Trump is currently in Qatar to hold talks with Emir Sheikh Tamim bin Hamad Al Thani, and will follow this with a visit to the United Arab Emirates later this week.
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