In a recent interview, President Trump did not rule out the possibility of a recession occurring this year, acknowledging the uncertainty that envelops the economy as his administration grapples with changing trade policies. He explained that he is hesitant to make predictions, stating that substantial changes require time to materialise, declaring, “There is a period of transition, because what we’re doing is very big – we’re bringing wealth back to America.”
Commerce Secretary Howard Lutnick took a firmer position, explicitly telling NBC that Americans should not brace for a recession. However, financial markets have felt the jitters from Trump’s unpredictable tariff policies, evidenced by US stocks suffering their worst week since the November election and an Atlanta Federal Reserve index indicating a staggering potential 2.4% contraction in GDP growth for the first quarter.
Despite these alarming signals, Trump attempted to alleviate concerns: when questioned on Air Force One, he simply replied, “who knows?” In a joint congressional address, he assured the public stating, “We’re okay with that. It won’t be much.” Yet, prominent financial firms are ringing alarm bells, with Goldman Sachs increasing recession probabilities to 20%, while Morgan Stanley revised its growth forecasts downward due to troubling economic indicators and tariff implications.
President Trump has not dismissed the prospect of a recession in 2023, citing economic uncertainty due to shifting trade policies. While his Commerce Secretary insists otherwise, financial markets are experiencing volatility, and key institutions like Goldman Sachs predict an increased probability of recession. Trump’s remarks express both caution and optimism about the economic future.
In summary, President Trump remains cautious about the economy’s prospects, admitting the possibility of a recession while striving to restore wealth to America. Despite his administration’s optimism, markets are jittery as financial institutions raise recession probabilities. With ongoing trade policy shifts and mixed economic data, uncertainties surround the US economy, reminiscent of the pandemic’s early effects.
Original Source: www.aa.com.tr
