The News
US President Donald Trump declined to rule out that his policies would lead to a recession this year, as investors grow increasingly wary of the country’s economic outlook.
Trump told Fox News that a “period of transition” will eventually lead to growth, downplaying concerns and threatening more tariffs against Washington’s trading partners.
Markets are less optimistic: Treasury bond yields have declined, manufacturing activity has contracted, expectations of further interest rate cuts have risen, and small businesses are planning more job cuts.
That said, many analysts think a 2025 recession remains unlikely, and Trump’s approach has no modern precedent, making long-term impacts hard to predict, The Wall Street Journal’s James Mackintosh wrote: But “confidence matters, and this isn’t a good way of boosting animal spirits.”