Trump's unexpected comment when querying his acceptance of inducing an economic downturn
The president, Donald Trump, appears unfazed by the prospect of an imminent economic downturn, saying the US is 'gonna do fantastically.' During a sit-down with NBC's Kristen Welker, Trump was questioned about Wall Street's concerns regarding a possible recession. When asked if he's comfortable with the country potentially dipping into a recession for a period as long as it helps him achieve his long-term goals, Trump responded by pointing fingers at those in finance who believe 'we're gonna have the greatest economy in history.'
However, Trump's tariffs have stirred up growing public discontent over his handling of the economy. Economists predict that the widespread tariffs imposed in recent months will drive up inflation and slow growth. Global markets plunged due to Trump's tariff announcements.
In a clip from the interview due to air on Sunday evening, Trump downplayed these concerns, stating that the economy is in a 'transition period.' This echoes a sentiment expressed on his Truth Social page, where he claimed that 'we're only in a TRANSITION STAGE, just getting started!!'
Trump has long been vocal about his desire for the Federal Reserve to lower interest rates, frequently launching attacks at the head of the independent central bank, Jerome Powell. Last month, he warned that there could be a 'slowing of the economy unless Mr. Too Late, a major loser,' lowers interest rates, NOW.' However, Powell has resisted these calls, particularly in regard to blunting the impact of the ongoing tariff war between nations.
In an unfavorable twist, Trump has accused Powell of 'playing politics' with interest rates and has even gone as far as to claim that he lowered rates to help former President Joe Biden.
Despite this, Trump still enjoys strong support from his loyal base, with over 50% approval among men, white Americans, and Republicans. However, his approval rating has recently seen a dip, dropping nine points since April 17—from 54% when it reached a record high to 45% this week.
Voters are increasingly concerned about rising prices and the economy, with six in ten stating that the economy is bad or getting worse. Many are particularly worried about inflating food prices. It seems that the 'Trump honeymoon period,' which was marked by historical levels of approval following his tariff announcements, is finally over.
However, it's not only tariffs that have soured voter opinions. The administration's evolving position on tariffs has left voters confused and worried about the potential impact on their savings and wallets, introducing doubt and uncertainty into economic forecasts.
The long-term economic consequences of President Donald Trump's tariffs and Federal Reserve policies could be far-reaching and complex. Tariffs could lead to broad price hikes across sectors, global trade fragmentation, and sector-specific retaliation. Meanwhile, the potential politicization of monetary policy by the Federal Reserve could result in inflationary pressures, eroding institutional independence, and destabilizing economic expectations.
As the world watches, it remains to be seen how Trump's economic policies will play out in the long term. One thing is certain: the future of the U.S. economy remains uncertain, and many are keeping a close eye on the coming months.
- Donald Trump, the president, expressed optimism about the economy's future, stating, "We're gonna do fantastically."
- Trump was questioned by NBC's Kristen Welker about Wall Street's concerns over a possible recession.
- Trump defended his economic policies, stating that those in finance who believe we're gonna have the greatest economy in history are behind him.
- Trump's tariffs have faced growing public discontent, with economists predicting they will drive up inflation and slow growth.
- These concerns were downplayed by Trump, who labeled the economy as being in a 'transition period.'
- Trump has long been vocal about his desire for the Federal Reserve to lower interest rates, frequently launching attacks at Jerome Powell, the head of the independent central bank.
- Trump has accused Powell of 'playing politics' with interest rates, even claiming that he lowered rates to help former President Joe Biden.
