Trump Hints at Economic Uncertainty, Refuses to Rule Out 2025 Recession

“Big Changes Take Time,” Says Trump Amid Rising Concerns Over U.S. Economy

March 10, 2025: Washington, D.C.:
President Donald Trump has declined to dismiss concerns about a potential U.S. recession in 2025, stating that the economy is in a “period of transition” as his administration implements major economic policies.

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“I hate to predict things like that,” Trump told Fox News when asked directly about the possibility of a recession. “What we’re doing is very big—we’re bringing wealth back to America. It takes a little time.”

While Trump remained vague, Commerce Secretary Howard Lutnick took a more definitive stance, assuring Americans that there is “absolutely no” reason to expect an economic downturn.

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Market Volatility and Rising Concerns

The uncertainty surrounding Trump’s economic policies—particularly his fluctuating tariff strategies on key trade partners like Canada, Mexico, and China—has rattled financial markets. The U.S. stock market just experienced its worst week since the last presidential election, with consumer confidence declining as Americans brace for potential price hikes caused by tariffs.

The situation has been exacerbated by widespread government layoffs, reportedly linked to cost-cutting measures advised by billionaire entrepreneur Elon Musk.

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Federal Reserve Signals Potential Slowdown

A widely followed Atlanta Federal Reserve index now projects a 2.4% contraction in GDP growth for the first quarter of 2025, marking the worst economic performance since the COVID-19 pandemic.

Economists remain divided on the outlook. Goldman Sachs has increased its recession probability estimate from 15% to 20% over the next 12 months, while Morgan Stanley has warned of softer-than-expected growth for the year.

Tariffs and Economic “Detox Period”

Trump’s trade policies remain a wildcard. His administration has indicated that tariffs may become a long-term strategy, depending on how targeted nations respond. Chief Economic Advisor Kevin Hassett stated that if other countries fail to meet U.S. demands, tariffs could create a “new equilibrium” with lasting economic impacts.

Treasury Secretary Scott Bessent added that the U.S. economy may undergo a “detox period” as the administration reduces government spending.

Looking Ahead

Trump attempted to reassure Americans in his State of the Union address, acknowledging potential economic disruptions but downplaying the severity.

“A little disturbance is okay. We’re okay with that. It won’t be much,” he said.

While the administration remains optimistic, economic analysts caution that the risk of a downturn remains real. The coming months will be crucial in determining whether the U.S. economy can weather policy shifts or if a recession is indeed on the horizon.

Tags: Trump, US Economy, Recession 2025, Stock Market, Tariffs, Federal Reserve, Economic Growth, Inflation, Trade Policy