The President of the United States, Donald Trump, has chosen not to rule out the possibility that the largest economy in the world is headed towards a recession amidst market concerns regarding his “America First” economic agenda.
During an interview with Fox News that aired on Sunday, Trump hesitated when asked if he anticipated a recession this year.
“I prefer not to make predictions like that. There is a period of transition because what we are doing is quite substantial. We are bringing wealth back to America. That is significant,” Trump stated in an interview with Sunday Morning Futures.
“It takes some time, but I believe it will be beneficial for us.”
Trump’s remarks come at a time when the markets are uneasy due to his changing statements on tariffs and indicators of a slowdown in the US economy.
Last week, Trump imposed 25 percent tariffs on imports from Mexico and Canada and doubled the tariff rate on Chinese goods to 20 percent.
However, just 48 hours later, he announced that certain tariffs on Mexican and Canadian goods would be postponed until April 2.
The S&P500 index fell over 3 percent from last Monday to Friday, marking its worst weekly performance since September.
On Thursday, the Atlanta Federal Reserve’s GDP tracker revised its estimate for the January-March period to a 2.4 percent decline, down from a 2.3 percent growth forecast last month.
On Friday, Goldman Sachs increased the probability of a recession in the next 12 months from 15 percent to 20 percent.
In a more optimistic sign for the economic forecast, the US Bureau of Labor Statistics reported the addition of 151,000 jobs in January on Friday – slightly below analysts’ predictions but in line with the average for 2024.
During a later interview with NBC on Sunday, the US Commerce Secretary, Howard Lutnick, dismissed discussions of a potential recession.
“Donald Trump is a victor. He will triumph for the American people. That is how it will be,” Lutnick stated in an interview with Meet the Press.
“There will be no recession in America,” he added.
“I would never bet on a recession,” Lutnick further commented. “It is not happening.”
