President Donald Trump conceded the U.S. economy is navigating a “period of transition” during a Sunday Fox News interview but declined to predict a recession, even as concerns mount over market turbulence linked to his administration’s tariff policies and federal job reductions.
When pressed on whether a 2025 downturn loomed, Trump replied, “I hate to predict things like that. There is a transition because what we’re doing is very big,” alluding to his economic agenda.
The remarks align with Treasury Secretary Scott Bessent’s recent defense of White House strategies, which he claims will spur long-term growth through corporate tax cuts and tariff revenues. Bessent, however, cautioned that the economy requires a “detox” from public spending reliance—a nod to fiscal tightening measures.
Trump’s unpredictable tariff approach has roiled markets, contributing to a 6% slide in U.S. stocks since their February 19 peak, the steepest drop since his November re-election. Bond markets, meanwhile, reflect growing unease over potential stagnation.
Despite acknowledging a possible “adjustment period” from tariffs during a March 4 congressional address, Trump downplayed risks. “There may be a little disturbance, but it won’t be much,” he said, reiterating confidence in his policies.
Analysts note the administration’s balancing act: defending aggressive trade measures while calming jittery investors. The stock slump, concentrated in tech shares, underscores sector-specific anxieties over tariff impacts and federal austerity. With fiscal adjustments expected in coming months, the White House faces mounting pressure to stabilize markets without retreating from its economic vision—a challenge complicating Trump’s pledge to sustain growth ahead of the 2026 midterms.
As uncertainty lingers, observers warn that the president’s reluctance to address recession risks head-on could test public and investor patience, particularly if volatility persists.
