Trump declines to rule out economic recession in 2025
WASHINGTON
President Donald Trump has declined to rule out the possibility that the U.S. might enter a recession this year.
"I hate to predict things like that," he told a Fox News interviewer on March 9 when asked directly about a possible recession in 2025.
"There is a period of transition, because what we're doing is very big, we're bringing wealth back to America," he said, adding, "It takes a little time."
Trump's commerce secretary, Howard Lutnick, was more definitive when asked about the possibility of a recession.
"Absolutely not," he told NBC's "Meet the Press" on March 9 when asked whether Americans should brace for a downturn.
Trump's on-again, off-again tariff threats against Canada, Mexico, China and others have left the U.S. financial markets in turmoil and consumers unsure what the year might bring.
Stock markets just ended their worst week since the November election.
When asked later on March 9 to clarify his remarks on whether there could be a recession, Trump told reports on Air Force One "Who knows?"
Given the uncertainties, economists have been wary of making firm predictions.
Economists at Goldman Sachs, citing Trump's policies, have raised their odds of a recession over the next 12 months from 15 percent to 20 percent.
And Morgan Stanley predicted "softer growth this year" than earlier expected.
Recessions are generally defined as two consecutive quarters of weak or negative GDP growth.
The U.S. was briefly in recession in early 2020 as the Covid pandemic spread. Millions of people lost jobs.
