Trump Acknowledges Economic Challenges, Says Short-Term Pain Necessary for Long-Term Vision
President Donald Trump acknowledged that the United States is facing short-term economic headwinds as the economy undergoes a critical transition.
Trump Acknowledges Economic Challenges, Says Short-Term Pain Necessary for Long-Term Vision
Trump Acknowledges Economic Downturn in US Transition
The US economy is currently struggling to adjust to the policies of the Trump Administration. President Trump acknowledged that cutting spending and reducing government intervention in the economy could lead to short-term difficulties, including the possibility of a recession.
In an interview with Fox News, Trump emphasized that the goal of these measures is to build a strong and stable economy for the future, despite the current difficulties. He said:
"We're going through a transition, because what we're doing is so big. We're bringing prosperity back to America. It's a big change. It's going to take time, but I think it's going to be good for us in the long run."
Trump acknowledges possibility of recession
When asked about the risk of a recession, Trump did not directly confirm it but did not rule it out either. He shared:
"I don't like to predict things like that. But look, we're going to have disruptions, but we're prepared for that."
Economists worry about tariffs and 'America First' policies
Many investors and economists have warned about the potential impact of Trump's tariffs and "America First" slogan, fearing that they could lead to a deep recession.
The US economy could shrink by 1.5% in the first quarter of this year, according to the Atlanta Federal Reserve, as importers rush to stockpile goods to avoid higher tariffs on many goods.
Despite that, Trump continues to defend his economic policies
Trump said that using Wall Street as a measure of the success of his administration's economic policies is inappropriate at the moment. He concluded:
"My job is to build a strong country. You can't measure success by the stock market alone."
Treasury Secretary Says This Is an Economic 'Weaning Period'
Treasury Secretary Scott Bessent also spoke out about the possibility of a recession, stressing that it is necessary as the economy transitions from relying on public spending during the Biden administration to private spending. “The market and the economy have become accustomed to government financial support, and now we are going through a transition away from that,” he said.