On Sunday, Donald Trump did not dismiss the possibility of a recession hitting the US economy this year, nor did he rule out an increase in inflation, attributing the uncertainty and market fluctuations to his unpredictable trade tariffs policy.
During an interview on the Fox News show Sunday Morning Futures, when asked if he anticipated a recession this year, the US president was noncommittal.
“I don’t like to forecast things like that. There’s a transition period, because what we are implementing is significant. We’re bringing wealth back to America, which is a major achievement. It always requires some time, but I believe it will ultimately benefit us greatly,” Trump remarked.
When questioned about whether his tariffs on imports would contribute to inflation, he responded: “You might see it. But in the meantime, guess what? Interest rates are down.”
He minimized the recent fluctuations in the stock market that resulted from his inconsistent stance on tariffs affecting exports from Canada, Mexico, and China, despite his usual focus on market performance and a readiness to take credit when stock prices rise during his administration.
“You must act in the best interest,” he asserted.
Last week, the Atlanta Federal Reserve indicated that the US economy might contract in the first quarter, sparking fears that a recession could impact the largest economy in the world if weaknesses continued, adding to the jitters in the stock market.
In 2018, Trump tweeted, now on X, that “trade wars are good and easy to win,” a viewpoint not widely shared among financial and economic analysts.
However, on Sunday, he expressed caution after previously boasting about the rapid economic benefits his policies would bring to the nation and the finances of ordinary Americans during his campaign.
Fox News Sunday Morning Futures anchor Maria Bartiromo prefaced the discussion on recession by stating to Trump, “Look, I understand you inherited a mess,” although most experts point out that his predecessor, Joe Biden, a Democrat, left a stable economy characterized by gradually declining inflation, despite it being uncomfortably high for a significant period, and steady international trading conditions for the US.
Meanwhile, on the same Sunday morning, NBC’s Meet the Press featured an interview with US commerce secretary Howard Lutnick.
He countered concerns that Trump’s global tariffs might lead to a US recession by stating, “Absolutely not. There will be no recession in America.”
Lutnick further remarked, “Anyone who bets against Donald Trump is akin to those who thought he had no chance to win a year ago… Over the next two years, you will witness unprecedented growth coming from America… I would never gamble on a recession; it’s not going to happen.”
