Trump Acknowledges 'Period of Transition' Amid Growing Recession Fears

President Donald Trump acknowledged on Sunday that the U.S. economy is undergoing a "period of transition" as his administration's policies take effect. However, he stopped short of predicting a recession, even as financial markets indicate growing concerns about economic downturn.

Trump on the Economy: "It Takes a Little Time"

In an interview with Fox News' Sunday Morning Futures, Trump was asked about the possibility of a recession. He avoided making a direct prediction but emphasized that his policies are reshaping the economy.

"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," Trump said. "There are always periods of ... it takes a little time, it takes a little time, but I think it should be great for us, I mean I think it should be great."

Conflicting Views from the Administration

While Trump remains optimistic, his administration has sent mixed signals on the state of the economy.

• Treasury Secretary Scott Bessent recently suggested that the private sector has already entered a recession, with government spending preventing a broader economic downturn.
• Commerce Secretary Howard Lutnick, on the other hand, dismissed concerns, saying on Meet the Press that "There's going to be no recession in America" and later adding, "I would never bet on recession. No chance."

Markets Signal Growing Uncertainty

Financial markets have increasingly reflected fears of an economic slowdown. Analysts note that while the White House is downplaying the risks, inflation, interest rates, and trade policy uncertainty continue to weigh on investor confidence.

While Trump describes the current economic climate as a necessary transition, experts and markets remain cautious. With differing opinions even within his administration, the question remains: Is the U.S. economy heading for a soft landing, or is a recession on the horizon?