BlackRock Chairman and CEO Larry Fink warns that the stock market will hit some “setbacks” if President Donald Trump and Republican lawmakers fail to deliver on the campaign vows of sweeping tax reform and “true deregulation.” 

Meanwhile, many other business leaders are “stepping back” until they see “real economic growth,” Fink told CNBC.

“If you believe it will be longer for these [policies] to transpire — and we have an economy that’s slowing because of uncertainty — then I would say the U.S. equity markets are probably higher than they should be,” Fink said.

European stocks are a better value right now than U.S. stocks, said Fink, a member of the president’s Strategy and Policy Forum, an advisory group of CEOs chaired by Blackstone’s Steve Schwarzman.

Fink sees only one or two more interest rate hikes this year instead “three or four.”

“There are weaknesses in this economy that are surprising people,” he said. He