The US President says the economy is in a “transitional period” amid uncertainty over his trade policy.
US President Donald Trump refused to rule out the possibility that the world’s biggest economy is being directed towards the recession amid market concerns about his “America First” economic agenda.
In an interview with Fox News that aired Sunday, Trump got in the way when asked if he was expecting a recession this year.
“I hate predicting such things. What we do is so big, so there’s a period of transition. We’re bringing wealth back to America. Trump said in an interview with futures on Sunday morning.
“It’s going to take a little while, but I think it should be great for us.”
Trump’s comments come amidst market unrest over his announcement of tariffs and his round-trip announcements regarding signs of slowing the US economy.
Last week, Trump slapped 25% tariffs on imports from Mexico and Canada, doubling the mandatory rate for Chinese products to 20%.
However, just 48 hours later, he announced that he would postpone some of the tariffs on Mexican and Canadian goods until April 2nd.
The Benchmark S&P500 Index fell by more than 3% from last Monday to Friday, earning its worst weekly performance since September.
On Thursday, the Atlanta Federal Reserve Gross Domestic Product (GDP) tracker down its January-March estimate to a 2.4% contraction, down from an expansion of 2.3% last month.
On Friday, Goldman Sachs raised the chance of a recession from 15% to 20% over the next 12 months.
In a more positive indication of the economic outlook, the U.S. Bureau of Labor Statistics on Friday reported adding 151,000 jobs in January. It’s slightly below the economist’s forecast, but it’s roughly in line with the 2024 average.
In an interview with NBC later Sunday, US Secretary of Commerce Howard Lutnick dismissed the talk of a possible recession.
“Donald Trump is the winner. He’s going to win for the Americans. That’s just what happens,” Lutnick said in an interview with Meet the Media.
“There’s no recession in America.”
“I never wagered on the recession,” Rutnick added. “There’s no chance.”
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