- Trump administration faces renewed recession fears amid market volatility.
- Economic policies, including tariffs, spark debate on long-term growth.
- Federal Reserve’s next steps closely watched as inflation concerns rise.
United States President Donald Trump has refused to rule out the possibility of a recession as concerns grow over the impact of his “America First” economic policies.
In an interview with Fox News’ Sunday Morning Futures, Trump hesitated when asked if he expected the U.S. economy to contract this year.
“I hate to predict things like that,” Trump said. “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. It takes a little time, but I think it should be great for us.”
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His remarks come amid market uncertainty following his administration’s tariff decisions and signs of an economic slowdown.
Last week, Trump imposed 25 percent tariffs on imports from Mexico and Canada while doubling duties on Chinese goods to 20 percent.
However, just 48 hours later, he announced a delay on some of the tariffs on Mexican and Canadian goods until April 2.
The financial markets reacted negatively, with the S&P 500 dropping over 3 percent in its worst weekly performance since September.
Meanwhile, the Atlanta Federal Reserve revised its GDP forecast for the first quarter, projecting a 2.4 percent contraction instead of last month’s expected 2.3 percent growth.
Investment bank Goldman Sachs also raised the probability of a U.S. recession within the next year from 15 percent to 20 percent.
Despite these warning signs, some officials remain optimistic. The U.S. Bureau of Labor Statistics reported an addition of 151,000 jobs in January—slightly below expectations but consistent with the 2024 average.
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Speaking to NBC’s Meet the Press, U.S. Commerce Secretary Howard Lutnick dismissed fears of an economic downturn.
“Donald Trump is a winner. He’s going to win for the American people. That’s just the way it’s going to be,” Lutnick said. “There’s going to be no recession in America.”
“I would never bet on a recession,” he added. “No chance.”
