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Journalism of Courage
US President Donald Trump has refused to dismiss the possibility of a US recession as his shifting trade policies fuel economic uncertainty and market volatility. Speaking on Fox News’ Sunday Morning Futures, he defended his aggressive tariff strategy but acknowledged the potential for short-term instability.
When asked by Fox News host Maria Bartiromo about the possibility of a recession this year, Trump sidestepped the question, saying “I hate to predict things like that”. Instead of making a direct prediction, Trump described the US economy as facing a “transition”.
“There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods of… it takes a little time. But I think it should be great for us.”
His comments come after the Federal Reserve Bank of Atlanta warned that the US economy could contract in the first quarter, heightening fears of a downturn.
Despite this, Commerce Secretary Howard Lutnick dismissed concerns, telling NBC’s Meet the Press: “Absolutely not. There’s going to be no recession in America.”
Trump’s trade war has seen steep tariffs imposed on imports from Canada, Mexico, and China, creating uncertainty in global markets. When asked whether these tariffs would drive inflation, he responded:
“You may get it. In the meantime, guess what? Interest rates are down.”
Despite typically taking credit when the stock market rises, Trump downplayed recent volatility triggered by his fluctuating trade policies, adding: “You have to do what’s right.”
Fox News anchor Maria Bartiromo introduced the topic by saying, “Look, I know you inherited a mess.” However, most economic experts argue that Trump took office with a stable economy from his Democratic predecessor, Joe Biden. Inflation, while high for a period, had been declining, and international trade relations remained steady.
https://twitter.com/FoxNews/status/1898750674071928837
Trump’s latest remarks contrast with his 2018 claim on X that “trade wars are good, and easy to win”—a sentiment many economists reject.
As markets react to his unpredictable economic approach, the coming months will reveal whether his confidence holds or if the US faces a downturn.
(with inputs from Fox News)
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