President Donald Trump has acknowledged that the U.S. is experiencing a shift from a high-spending period to a more nuanced approach, which might result in an economic slowdown.
Trump Admits Economic Hurdles, Short-Term Pain in Sight
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Trump Recognizes Economic Slowdown as Part of U.S. Transition Period
The U.S. economy might be experiencing a slowdown as a result of the measures currently implemented by the Trump Administration. President Trump acknowledged that the actions proposed to curb spending and reduce the involvement of the public sector might lead to disruption, affecting the country’s indexes.
Talking to Fox News, Trump stated that this process concentrated on building a country for the long term, instead of focusing on immediate woes. He noted:
There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. It takes a little time, but I think it should be great for us.
When asked about a possible recession, Trump did not want to publicly recognize this could happen. “I hate to predict things like that. Look, we’re going to have disruption, but we’re OK with that,” he stressed.
Investors and economists have warned about the implementation of a tariff system and the so-called “America First” policies, alerting these could trigger a large recession.
The Atlanta Fed predicted that the economy would contract by 1.5% during Q1 as importers stockpile goods in anticipation of deep tariffs on several articles.
Read more: US Economy Faces Recession Scare as Atlanta Fed Projects -1.5% Q1 Contraction
Regardless, Trump argued that during this period, it would not be fair to use Wall Street as an index to assess the success or failure of his administration’s economic policies. “What I have to do is build a strong country. You can’t really watch the stock market,” Trump concluded.
Treasury Secretary Scott Bessent said this possible upcoming recession came as a “detox period” as the markets moved away from the public sector support during Biden’s admin to private spending. “The market and the economy have just become hooked” on these funding levels, Bessent declared on Friday.
