President Donald Trump and senior White House officials are preparing Americans for a potential economic slowdown, emphasizing that any near-term turbulence will ultimately lead to stronger growth. Amid fears over tariffs, a slowing labor market, and signs of negative growth in the first quarter, the administration remains optimistic while acknowledging short-term challenges.
“There is a period of transition, because what we’re doing is very big,” Trump said Sunday on Fox News’ Sunday Morning Futures. “We’re bringing wealth back to America. … It takes a little time, but I think it should be great for us.”
While dismissing concerns of an imminent recession, Trump admitted to expected “disruptions.” Treasury Secretary Scott Bessent described the situation as a necessary “detox period” from excessive government spending under former President Joe Biden. Meanwhile, the Atlanta Federal Reserve’s GDPNow model is projecting a 2.4% decline in first-quarter economic growth, raising concerns about a potential contraction.
Commerce Secretary Howard Lutnick, however, rejected recession fears, stating on NBC’s Meet the Press: “There’s going to be no recession in America. … If Donald Trump is bringing growth to America, I would never bet on recession, no chance.”
Despite assurances from the administration, Wall Street remains cautious. The labor market showed mixed signals in February, with 151,000 new jobs but a rise in part-time employment and an uptick in the real unemployment rate to 8%. Consumer spending also slowed in January, adding to uncertainty.
Goldman Sachs recently cut its 2025 GDP growth forecast to 1.7% but maintains just a 20% probability of recession. While concerns persist, the White House insists that its policies will ultimately lead to long-term economic stability.
“What we’re doing is we’re building a tremendous foundation,” Trump reaffirmed.
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