WASHINGTON:President Donald Trump on Sunday did not dismiss the possibility of the United States entering a recession this year, leaving the question open during a Fox News interview. When asked directly about the potential for an economic downturn in 2025, Trump responded, “I hate to predict things like that.” He emphasized that the U.S. is undergoing a significant transition, stating, “What we’re doing is very big—we’re bringing wealth back to America. It takes a little time.”
In contrast, Trump’s Commerce Secretary, Howard Lutnick, was more definitive when questioned about the likelihood of a recession. Appearing on NBC’s *Meet the Press*, Lutnick firmly stated, “Absolutely not,” when asked if Americans should prepare for an economic downturn.
Trump’s fluctuating tariff threats against countries like Canada, Mexico, and China have created uncertainty in U.S. financial markets, leaving consumers anxious about the future. Stock markets recently concluded their worst week since the November election, while consumer confidence has dipped as shoppers, already grappling with years of inflation, brace for potential price increases resulting from tariffs.
Adding to the economic concerns are widespread government layoffs orchestrated by Trump’s billionaire advisor, Elon Musk. When pressed later on Sunday to clarify his earlier comments about a possible recession, Trump told reporters aboard Air Force One, “Who knows?”
Economic indicators present a mixed picture. The Atlanta Federal Reserve’s widely monitored index currently predicts a 2.4% contraction in real GDP growth for the first quarter of the year, which would mark the worst performance since the peak of the COVID-19 pandemic.
The uncertainty surrounding Trump’s economic policies and their impact on the U.S. economy continues to fuel debates about the nation’s financial stability. As the administration navigates these challenges, Americans remain cautious about what the future holds.
