United States President, Donald Trump, appeared to brush aside fears of an impending recession, despite growing unease surrounding the trajectory of his economic agenda, expressing confidence during an NBC News interview that the economy would ultimately stabilize.
In a preview from NBC’s “Meet the Press with Kristen Welker,” Trump pointed to optimistic voices in the financial sector.
“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,” he remarked.
When asked if he would accept a short-term recession to accomplish his broader objectives, Trump responded, “Look yes, everything’s OK. What we are — I said, this is a transition period. I think we’re going to do fantastically.”
However, recent economic data suggested otherwise. The U.S. Commerce Department reported that gross domestic product shrank at an annualized rate of -0.3% in the first quarter, a far steeper decline than analysts predicted and the worst quarterly performance since 2022. Businesses stockpiling inventory and reduced consumer spending were noted as contributing factors.
Trump has repeatedly hinted that temporary economic pain may accompany the “reset” of global trade policies.
His administration’s broad imposition of tariffs, particularly those aimed at China, has drawn criticism for creating instability. Though some tariffs were temporarily suspended, their cumulative effect has rattled markets.
In a recent remark, Trump acknowledged that his trade measures could impact everyday Americans.
“You know, somebody said, ‘Oh, the shelves are going to be open,’” he 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.”
Some top officials in Trump’s administration have also conceded that an economic downturn may be a consequence of their policies, but one they are willing to tolerate.
Treasury Secretary Scott Bessent referred to the moment as a necessary “detox” for the economy, while Commerce Secretary Howard Lutnick said that if Trump’s tariffs reignited domestic manufacturing, a recession would be “worth it.”
Although consumer activity, which makes up about two-thirds of the U.S. economy, has slowed, it remains uncertain whether the nation has officially entered a recession.
According to the standard definition, a recession entails “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
