Washington: Trump Hints at Possible Recession Amid Market Turmoil
US President Donald Trump has refused to rule out the possibility of the US economy heading into a recession this year and an increase in inflation, as his chaotic trade tariff policy continues to create uncertainty and market turmoil. Trump stated that his economic goals will take some time to achieve, and the country will have to go through a transition period before results are visible. However, when asked directly during the Fox News show Sunday Morning Futures about the likelihood of a recession this year, Trump dodged the question.
Trump responded, "I don't like to predict such things. This is a transition period, because what we are doing is very big. We are bringing wealth back to the US. This is a big deal. And there are always times when it takes a while. It takes a while, but I think it should be very good for us."
When asked if his tariffs on US imports from Canada, Mexico, and China would lead to a rise in inflation, Trump admitted, "You might see that."
Stock Market Volatility Increases Fear of Recession
Trump's trade policies, including imposing tariffs on goods imported from Canada, Mexico, and China, have already created turmoil in the US stock market. Investors and economists are fearing that if the trade war continues, it could push the US economy into a recession.
Significantly, last week the Atlanta Federal Reserve indicated that the US economy is showing signs of heading towards a recession in the first quarter of this year. The Federal Reserve warned that if the weakness in the market persists, the world's largest economy could officially slip into recession, creating panic in the stock market and affecting global financial stability.
However, Trump downplayed the stock market volatility, saying it is only a temporary phase and his policies will ultimately bring wealth and growth back to America.
Commerce Secretary Denies Recession Fears, Supports Trump
While concerns about a potential recession are rising, US Commerce Secretary Howard Lutnick dismissed all speculation and asserted that America will not face any recession under Trump's leadership. Lutnick strongly defended Trump's tariff policies and stated that they are in the best interest of America.
Lutnick said, "Absolutely not, there will be no recession in America. People who bet against Donald Trump are the same people who believed he would not win the presidency. Now you will see the biggest growth rate from America in the next two years. I would never bet on a recession, no chance."
According to Lutnick, the tariffs imposed on China, Mexico, and Canada will ultimately strengthen the US economy by bringing back jobs and wealth that were previously being taken away by foreign imports. He emphasized that Trump's trade war will prove to be a masterstroke for the US economy in the long run.
Trump's Uncertain Tariff Policy Triggered Market Chaos
The chaotic tariff policy of Donald Trump has been a major cause of concern for the US economy and global financial markets. In 2018, Trump imposed high tariffs on imported goods from Canada, Mexico, and China, aiming to reduce the trade deficit and bring back manufacturing jobs to the US. However, this move triggered a trade war, resulting in massive volatility in the stock market and slow growth in various sectors.
Experts believe that if the trade war continues, it could heavily impact the US economy, pushing it towards a recession. Many large-scale companies have already suffered huge losses due to the import tariffs, and it is also affecting the global supply chain.
In response to these concerns,
Trump said -
"We are bringing wealth back to the US. This is a transition period, and it will take some time. But we will see very good results in the future."
US Federal Reserve Warns of Potential Recession
The Atlanta Federal Reserve has already predicted a recession in the first quarter of this year, pointing out the slowing GDP growth rate and rising market uncertainties. They also noted that the impact of tariffs on imported goods from Canada, Mexico, and China has started affecting American businesses and industries.
The Federal Reserve also warned that if Trump's tariff policy is not reviewed soon, the US economy could officially enter a recession, causing job losses, business closures, and declining consumer demand.
Trump Remains Confident Despite Recession Fears
Despite growing concerns about a recession, Donald Trump remains confident that his economic strategy will eventually yield great results. According to Trump, the temporary turmoil in the market is necessary for achieving his long-term economic goals.
He stated -
"It takes time. This is a very big thing that we are doing. Yes, you may see inflation, and yes, the stock market may experience some volatility. But we will bring back wealth, jobs, and economic growth to the United States."
However, Trump's vague responses regarding a possible recession have only intensified panic among economists, investors, and the general public.
What If a Recession Hits the US?
If the US economy slips into a recession, the impact will not only be limited to America but will have global consequences. Some of the potential impacts of a recession include:
- ✅ Massive Job Losses: Many US companies may lay off workers due to declining revenue and rising production costs.
- ✅ Stock Market Crash: Investors may pull out their money, causing major crashes in the stock market.
- ✅ Reduced Global Trade: Countries dependent on US trade will also suffer major economic losses.
- ✅ Increased Inflation: Due to higher import tariffs, the prices of goods may skyrocket in the US, leading to inflation.
Experts Fear Trump’s Policy May Backfire
Many economists and financial experts have warned that if Donald Trump does not change his trade war strategy, the US economy may officially enter a recession within a few months. Experts have also criticized Trump's refusal to acknowledge the negative impact of tariffs, labeling it as a dangerous gamble.
Renowned economist Paul Krugman stated -
"Trump's tariff policy is like playing with fire. If he doesn’t back off, the US economy will crash like never before."
Even major US corporations like Tesla, Ford, General Motors, and Amazon have warned that Trump's tariff policy is affecting their business growth and supply chains.
Conclusion
As the fear of recession looms large, Donald Trump's chaotic trade policy continues to raise uncertainty in the US economy. Despite strong warnings from economists and financial institutions, Trump remains confident about his economic plans. However, the massive stock market volatility, rising inflation, and job losses are indicating that a recession might hit the US economy very soon.
Only time will tell whether Trump's gamble on the trade war will bring wealth back to America or push the world's largest economy into a deep recession.
✅ Stay tuned for more updates on US politics, economy, and global market trends.
