Trump Says Economy Faces A 'Period Of Transition': Is A Recession Ahead?

President Donald Trump tiptoed around questions of a looming recession during a Fox News interview on Sunday. He once again dodged the question from reporters while onboard Air Force One, but denied the possibility of an economic downturn.

What To Know: Trump seemed to acknowledge the possibility of a recession in 2025, citing a “period of transition” as his administration implements significant changes to the economy, including tariffs and federal workforce reductions.

When asked about a possible recession during an interview on Fox News’ "Sunday Morning Futures," Trump stated, “I hate to predict things like that.”

Instead, he emphasized that his policies aim to bring wealth back to America and may require time for their benefits to materialize.

Later on Sunday, reporters asked the president again about a potential recession ahead. Trump responded by touting his trade policies but did not address the question directly.

“All I know is this — we’re going to take in hundreds of billions of dollars in tariffs and we’re going to become so rich you’re not going to know where to spend all that money. I’m telling you, you just watch,” the President said.

Why It Matters: According to the Economic Policy Institute, Trump inherited a healthy economy from his predecessor, President Joe Biden.

Job growth in December was “extremely rapid,” the nonpartisan nonprofit reported. Trends indicated that wage growth remained above inflation, which was nearing a return to 2% — the Federal Reserve's preferred target.

Since Trump took office on Jan. 20, there have been growing concerns over economic turbulence and unsettled markets following tariffs and an escalating trade war.

Last week, the S&P 500, tracked by the SPDR S&P 500 SPY, saw its worst weekly performance since September and the Nasdaq, tracked by the Invesco QQQ Trust QQQ, slipped into a correction.

Consumer confidence has dropped recently, unemployment rose to 4.1% in February and economists warn of instability due to unpredictable policies.

Holger Schmieding, chief economist at Berenberg Bank, called Trump "an agent of chaos and confusion" on CNBC's "Squawk Box Europe" Monday.

Schmieding said the president's "zigzagging on tariffs shows that he has little idea of the potential consequences of his tariff policies."

However, the economist said he does not see a recession ahead:

"I don't think we will talk about a U.S. recession. The U.S economy is resilient, I would say, largely despite Donald Trump."

Read Next: