(OPINION) BlackRock CEO Larry Fink has raised concerns about the U.S. economy, stating it is “very close” to a recession and may already be in one.

Speaking at a conference in New York, Fink pointed to persistent inflation, rising interest rates, and slowing consumer spending as key pressures on economic growth.

He noted on CNBC, that while the labor market remains resilient, cracks are forming in sectors sensitive to borrowing costs, such as housing and small businesses.

Fink’s comments come amid mixed economic signals. Recent data shows inflation hovering above the Federal Reserve’s 2% target, with energy and food prices continuing to strain household budgets.

Meanwhile, retail sales growth has softened, suggesting consumers are pulling back. However, strong job creation and wage growth have so far prevented a sharper downturn, creating uncertainty about the economy’s trajectory.

The BlackRock chief also highlighted global risks, including geopolitical tensions and supply chain disruptions, which could exacerbate domestic challenges.

Fink urged policymakers to address structural issues like energy independence and workforce development to bolster long-term stability.