Over the weekend, President Donald Trump said he wasn’t going to rule out a recession in the U.S.'s future. WSJ's Ashby Jones explains the cracks starting to appear in the economy and Brian Schwartz reports on how the White House is managing those cracks. See The Journal live! Take our survey ! Further Reading: -Trump’s Economic Messaging Is Spooking Some of His Own Advisers -Inflation Cooled to 2.8% in February, Lower Than Expected -CEOs Don’t Plan to Openly Question Trump. Ask Again If the Market Crashes 20%. Further Listening: -The Trade War With China Is On -Trump’s Tariffs Cause Chaos in Auto Industry Learn more about your ad choices. Visit megaphone.fm/adchoices
Full Episode
On Sunday, President Donald Trump said something surprising on Fox News. He said he wasn't going to rule out a recession. Are you expecting a recession this year?
I hate to predict things like that. There is a period of transition, because what we're doing is very big. We're bringing wealth back to America. That's a big thing. And there are always periods of—it takes a little time— It takes a little time.
His statement marked a shift in the message coming from the White House. Trump has promised a sweeping transformation of the American economy, one that makes America affordable again. But now, the messaging is that implementing that vision could cause some short-term pain. Here's Treasury Secretary Scott Besant on CNBC.
The market and the economy have just become hooked. We've become addicted to this government spending, and there's going to be a detox period.
Already, the economy is seeing some signs that that pain is here.
Consumer confidence is down nearly 10% from last month.
The Dow plunging nearly 750 points, the S&P 500, NASDAQ both falling sharply as well amid fears of a slowing economy and stubborn inflation.
The new 25% tariffs on Canada and Mexico and additional tariffs on China risk raising prices for American households.
We're starting to see some cracks. We're starting to see companies talk about declining demand for their products and services. So we're starting to see some sort of slippage, I think, in the economy. Maybe in the long run, it'll prove to be very beneficial to the economy, but I think what it's done at the outset is inject a lot of uncertainty into it.
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