Trump Doesn’t Rule Out Possible U.S. Recession in 2025 🇺🇸

Washington, D.C. – U.S. President Donald Trump declined to rule out a possible recession in 2025, stating in a Fox News interview on Sunday that the country is in a “transition period” as his administration works to “bring wealth back to America.”

“I hate to predict things like that,” Trump said when directly asked about a recession. “It takes a little time.”

Conflicting Economic Signals

🔹 Commerce Secretary Howard Lutnick insisted there is “absolutely” no risk of recession.
🔹 Stock markets just saw their worst week since the November election.
🔹 Consumer confidence is declining, with Americans worried about rising tariff-related costs.
🔹 Atlanta Federal Reserve now predicts a 2.4% GDP contraction in Q1 2025—the worst since the COVID-19 pandemic.

Uncertainty Over Tariff Policies

Trump’s shifting trade policies—which include tariff threats on Canada, Mexico, and China—have destabilized financial markets. In his State of the Union address, Trump warned Americans to expect “a little disturbance” as tariffs take effect.

🔹 Goldman Sachs raised its 12-month recession risk from 15% to 20%.
🔹 Morgan Stanley predicts weaker economic growth in 2025.

While Treasury Secretary Scott Bessent has described this as a “detox period”, economists remain cautious about making firm predictions.