Trump dodges recession talk as global markets plunge
President Donald Trump has refused to rule out that his economic policies could trigger a recession and pushed for a “period of transition” that global markets have already responded to negatively.
In an interview that aired on Sunday, with Fox Business conspiracy theorist Maria Bartiromo, Trump was asked if he expected a recession.
“I hate to predict things like that. There is a period of transition because what we’re doing is very big, we’re bringing wealth back to America,” Trump said.
Trump’s statement is false. He has repeatedly throughout his political career predicted economic calamity, usually in the context of attacks against his Democratic rivals like former President Joe Biden and Sec. Hillary Clinton.
In a related flip-flop, after campaigning throughout 2024 highlighting the cost of eggs and blaming the Biden administration for the increase, on Saturday Trump promoted a column by conservative activist Charlie Kirk telling the public to “shut up about egg prices.”
Trump’s interview was aired on Thursday, so the president’s stance was clear, but on Sunday, Commerce Secretary Howard Lutnick was at odds with his boss on the topic of a recession, telling NBC’s “Meet the Press” that the public should “absolutely not” prepare for a recession.
“Donald Trump is a winner. He’s going to win for the American people, that’s just the way it’s going to be. There’s going to be no recession in America,” Lutnick proclaimed.
The clash between Trump’s and Lutnick’s rhetoric was symptomatic of the chaotic approach the administration has had on economic issues, particularly tariffs—and it is having a disastrous real world effect.
The stock market had its worst week in six months (the S&P 500 lost 3.1% of its value, while the Nasdaq was down 3.45%) after the administration kicked off tariffs against Canada and Mexico. Those nations then responded with tariffs of their own. After the markets tanked, the Trump administration pulled back on some of the tariffs, delaying them, just days after asserting that the action would cause other nations to give in.
In another bad sign, China’s tariffs on multiple U.S. agricultural goods went into effect on Monday, putting economic stress on American farmers.
Trump’s allies at Fox Business and the network have struggled to sell the harmful policy to its audience, even arguing last week that tariffs were associated with the economic boom of the “Roaring ’20s.” Fox didn’t mention that the era of those tariffs was immediately followed by the Great Depression.
As economic stability comes into question (it was a nonissue for most during the Biden administration and the passage of economic stimulus following the COVID-19 pandemic), Trump is also fostering instability in the federal government with the actions of his billionaire financier Elon Musk.
Just over a month into his second term instability and a looming recession have become the norm under Trump.