President Donald Trump expressed his opinion on the U.S. economy, referring to a "transition period" the country is going through. These statements arose amid concerns about the risks of a potential recession in the United States, especially due to policies related to tariffs and federal job cuts that have generated turmoil in the markets.
During his appearance on Fox News' "Sunday Morning Futures" program, when asked if he anticipated a recession, Trump avoided making specific predictions and mentioned: "I hate to predict things like that. There is a transition period because what we are doing is very important." These statements align with his previous remarks to Congress and recent comments from senior administration officials.
Trump's team's plans include tax cuts and future tariff revenues, which they claim will boost the economy. However, the uncertainty generated by Trump's fluctuating tariff policies has unsettled investors, causing massive sell-offs in technology stocks and volatility levels not seen in years.
On another occasion, Trump dismissed that his change in stance on tariffs towards Mexico and Canada affected investors, stating that he does not closely follow the stock market. On the other hand, the Treasury Secretary mentioned the need for a "detoxification" in the U.S. economy to reduce reliance on public spending, while bond traders point to an increasing risk of economic stagnation.
In his recent statements, Trump acknowledged that there may be a "adjustment period" as tariffs take effect. Market volatility has been notable, with the S&P 500 index recording seven consecutive days of significant swings, and technology companies like Nvidia Corp. and Tesla Inc. facing substantial losses after a period of boom.
In his interview on "Sunday Morning Futures," Trump defended his economic approach, asserting that they are returning wealth to the United States and that, despite the temporary disruptions, they view it as a crucial step in the process.
