Trump Doesn’t Preclude a Recession This Year

President Donald Trump has not discounted the possibility of a U.S. recession this year in a TV interview, as the White House’s imposition of tariffs and federal government job cuts increasingly weigh on the American economy.

“I hate to predict things like that. 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,” he said in an interview with Fox News Channel’s “Sunday Morning Futures,” and made available online via LIVEnow From Fox’s YouTube channel, when asked if he’s expecting a recession this year. 

He then added, “It takes a little time. It takes a little time. But I think it should be great for us.”

Of the stockmarkets falling, he said, the decline is “not much.”

“You can’t really watch the stockmarket,” adding that the administration is “building a tremendous foundation for the future.”

Major stock indexes fell last week over continued uncertainty around U.S. tariff policy, although they closed higher Friday after Federal Reserve Chair Jerome Powell said the central bank is waiting to see how Trump’s policy changes will affect the economy before moving on interest rates. Trump’s back-and-forth trade policies, including delaying 25% tariffs on Canada and Mexico two days after imposing them, have already heightened market uncertainty.

Canada has already retaliated. Meanwhile, former Bank of England and Bank of Canada governor Mark Carney was elected to the leadership of Canada’s Liberal Party and the role of the country’s prime minister on Sunday, replacing Justin Trudeau, and pledging retaliatory tariffs on U.S. goods until “Americans show us respect.”