Tuesday marks President Trump’s 50th day in office, which has been a whirlwind of economic changes — most notably his tariffs on the U.S.’s neighbors — that have wobbled the stock markets.
On the campaign trail: Trump promised an economic boom by stopping inflation, lowering prices and cutting taxes. He repeatedly slammed the Biden administration’s policies for stifling the U.S. economy.
But now, Trump is recalibrating expectations: Over the weekend, Trump wouldn’t rule out the possibility of an economic recession, telling Fox News on Sunday there would be a “period of transition” for the U.S. “I hate to predict things like that,” Trump told Fox’s Maria Bartiromo when asked if he expected a recession this year.
^ This sent a shockwave through the market this morning: U.S. stocks tumbled even further this morning after Trump’s weekend comments. The Dow opened down 1 percent, the S&P fell by 2 percent and Nasdaq dropped by 3.2 percent.
And Republicans are worried about the economy: The Hill’s Alexander Bolton spoke with a number of Republican senators who expressed concern about the impacts of Trump’s trade policies on the U.S. economy.
The tea — one Republican senator requested anonymity to speak candidly: “Maybe if his approvals keep diving and the economy starts to pinch, maybe” Trump will shift on tariffs, “but in the meantime, what damage are we doing? … Tomorrow, he might lift all these sanctions that he just put on yesterday. It’s crazy.”
What are other officials saying about the economy?:
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The Fed chair is worried about rising prices: Federal Reserve Chair Jerome Powell predicted that Trump’s tariffs will raise consumer prices in the U.S. "We're at a stage where we're still very uncertain about what will be tariffed, for how long, at what level," Powell said at an economic forum Friday. "But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and, to some extent, consumers."
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FWIW, Trump’s Commerce head disagrees about a potential recession: Commerce Secretary Howard Lutnick immediately dismissed the suggestion of a forthcoming recession, telling NBC News’s “Meet the Press” “absolutely not” when asked whether Americans should brace for a recession.
How is the economy doing?: February’s jobs report was steady but showed a slight uptick in the unemployment level. Some experts warn that Trump’s recent mass layoffs within the federal government may not be reflected until the next jobs report.
Economics 101 — what is a recession?: A recession happens when the economy declines for two consecutive quarters.
Do economists think we’re headed for a recession?: Some economists (and betting markets) are increasing the odds of a recession, per Business Insider. But CNBC reports that while economists think Trump is an “agent of chaos,” they generally think the economy is resilient.
