Economic uncertainties dismissed by Trump, who expresses view that a short-term recession could be tolerable in the grand scheme of things.
Rewritten Article:
Donald Trump, the U.S. President, appears unfazed by escalating worries that his economic policies might trigger a recession, brashly stating in a recent interview that the economy will remain solid in the long-term, even if a contraction occurs in the near future.
"You know what? Some folks on Wall Street reckon we're heading for the best economy ever. But ya'll don't talk about that 'cause there are those on Wall Street who say this is the greatest thing happening," Trump said, excerpted from "Meet the Press with Kristen Welker" which aired on Friday.
When pushed for his opinion on tolerating a short-term recession to attain his long-term ambitions, Trump confirmed, "Yeah, it's all good. What we're working on - I said, this is a transition period. I think we're gonna rock it."
Trump's economic policies, with their emphasis on trade wars and erratic tariffs, have already sent the world's most significant economy into a reverse, conceded officials. The first quarter's Gross Domestic Product, measuring all the goods and services produced in the economy, registered -0.3% annualized, according to the Commerce Department on Wednesday. This figure fell well below economists' predictions and marked the worst quarter since 2022.
Trump has warned earlier that Americans should anticipate some economic "turbulence" during this transition period as his policies realign the global economic structure for allies and rivals alike. Through tariffs, he has imposed sweeping levies globally and imposed particularly burdensome import taxes on China, a major U.S. trading partner.
Earlier this week, Trump acknowledged that tariffs could result in shortages and higher prices for everyday Americans. "Some folks said, 'Oh the shelves will be stocked.' But maybe the kids will have two toys instead of twenty, and the two toys might cost a few extra bucks," Trump said.
Trump and his administration officials have also signaled that tariffs might plunge the economy into a recession, but this might be an acceptable sacrifice. Treasury Secretary Steve Mnuchin, for example, suggested America needed a detox period. If tariffs succeeded at reviving America's manufacturing sector, Commerce Secretary Howard Lutnick thought a recession would be "worth it." And Trump has sometimes refused to rule out a recession as a consequence of his actions.
Primarily reliant on consumption, the U.S. economy is weakening, but it's too soon to determine if a recession has already begun; the official definition of a recession in the U.S. is a significant downturn in economic activity that lasts more than a few months.
The interview clip is part of a larger conversation expected to air on NBC's "Meet the Press" this Sunday.
CNN's Allison Morrow contributed reporting.
Insights from Enrichment Data:
- Trump's affirmation of a potential short-term recession to achieve long-term objectives can create economic instability, with job losses, decreased consumer spending, and reduced business investment as likely consequences.
- A recession in the U.S. can have international implications, with other countries experiencing decreased exports, potentially affecting their economic stability. This could initiate a chain reaction of economic downturns worldwide.
- Trump's trade policies, such as tariffs, may exacerbate economic instability during a recession, disrupting supply chains and raising consumer prices.
- Trump's stance on the recession could influence public perception of his economic policies and ultimately affect political outcomes, given his decreased approval ratings due to economic concerns.
- Despite warnings from economists, President Trump remains unphased about his economic policies potentially causing a recession, viewing it as a necessary transition period to achieve his long-term goals.
- If the U.S. does enter into a recession, it may lead to job losses, lowered consumer spending, and decreased business investment, according to economic analysis.
- Trump's affirmation of a possible short-term recession, along with his trade policies like tariffs, could have international implications, potentially causing other countries to experience decreased exports and economic instability.
- Trump's stance on the recession, combined with his decreased approval ratings due to economic concerns, could impact political outcomes as public perception of his economic policies may be influenced by these events.
