Trump shrugs off recession fears, saying a downturn would be OK in the long term
CNN
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President Donald Trump appeared to dismiss growing concerns that his economic policies could cause a recession, telling NBC News that the economy would be “OK” in the long term even if a recession happens in the near future.
“Some people on Wall Street say that we’re going to have the greatest economy in history. Why don’t you talk about them? Because some people on Wall Street say this is the greatest thing to ever happen,” Trump said in an interview clip from “Meet the Press with Kristen Welker” released on Friday.
Pressed on whether he would be okay with a recession in the short term to achieve his long-term goals, the president said, “Look yes, everything’s OK. What we are — I said, this is a transition period. I think we’re going to do fantastically.”
Trump’s economic policies — and particularly the trade war he has ignited with his whipsaw, abrupt tariffs — have already sent the world’s largest economy into reverse: Gross domestic product, which measures all the goods and services produced in the economy, registered at an annualized rate of -0.3% in the first quarter, as businesses hoarded goods and consumer spending decelerated, the Commerce Department said Wednesday.
That was far worse than economists had expected, and it marked the worst quarter since 2022.
Trump has warned previously that Americans would see some economic “disturbance” throughout a transition period as his policies reset the global economic order for friend and foe alike. He has imposed sweeping global tariffs (and paused some of them), and he has levied especially high import taxes against China, a major US trading partner.
Earlier this week, for example, he acknowledged that tariffs could lead to shortages and higher prices for everyday Americans.
“You know, somebody said, ‘Oh, the shelves are going to be open,’” Trump said. “Well, maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally.”
Trump and some administration officials have also previously signaled that tariffs may plunge the economy into a recession — and that may be an acceptable outcome.
Treasury Secretary Scott Bessent suggested America needed a “detox” period. If Trump’s tariffs succeeded at restoring America’s manufacturing prowess, Commerce Secretary Howard Lutnick said a recession would be “worth it.” And Trump has sometimes declined to rule out a recession as a result of his actions.
The US economy is powered by consumption — about two-thirds. And throwing sand into that growth engine can cause major disruptions.
The economy is weakening, certainly. But it’s too early yet to tell if the US is in a recession; the official definition of a recession in the United States is “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
The clip is part of a larger interview expected to air on NBC’s “Meet the Press” on Sunday.
CNN’s Allison Morrow contributed reporting.