President Donald Trump has acknowledged that the US economy is entering a “period of transition” but avoided directly predicting a recession, despite concerns of a potential slowdown caused by his tariff policies and cuts to federal jobs.
In an interview on Fox News’ Sunday Morning Futures, Trump was asked whether he expects a recession in 2025. He responded cautiously, saying, “I hate to predict things like that. There is a period of transition because what we are doing is very big,” referencing the administration’s economic policies.
Trump’s comments reflect recent statements from top officials, including Treasury Secretary Scott Bessent, who emphasized that tax cuts and revenue from tariffs could eventually stimulate economic growth. However, Bessent also acknowledged that the US economy may need to “detox” from its reliance on public spending.
Trump’s on-again, off-again tariff policies have caused significant market volatility, leading to a sharp sell-off in technology shares. Since peaking on February 19, the US stock market has fallen by more than 6%, marking the largest downturn since Trump’s re-election four months ago. Bond traders are now signaling growing concerns that the US economy may stall.
During his March 4 speech to Congress, Trump noted there could be an “adjustment period” as tariffs take effect, admitting there may be “a little disturbance” but expressing confidence that it would not be severe. “We are okay with that. It won’t be much,” he said.
The US economy’s near-term future remains uncertain, with markets watching closely as the administration navigates its tariff strategy and prepares for potential fiscal adjustments in the coming months.
