With Turbulence, Trump Doesn’t Talk Stock Market, Doesn’t Rule Out Recession
India-West News Desk
NEW YORK, NY – Donald Trump on March 9 refused to rule out a possible recession and acknowledgedthat inflation could rise under his trade policies. The remarks marked a shift from his usual confidence in economic matters and came amid growing market anxiety over his tariff proposals.
Trump’s unpredictability on trade has already unsettled investors, with his threats of tariffs on imports from Canada, Mexico, and China – here today and gone tomorrow – adding to the volatility. Yet, when asked on Fox News whether he expected a recession this year, he avoided a direct answer.
“I hate to predict things like that,” he said. “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, but I think it should be great for us.”
A question on inflation drew a similarly ambiguous response. When asked if his tariffs would push prices higher, Trump admitted, “You may get it,” before quickly shifting the focus. “In the meantime, guess what? Interest rates are down.”
His remarks stood in contrast to the confidence he projected throughout his campaign, when he repeatedly promised swift economic gains. Now, with financial markets reacting to his trade policies and questions mounting over their long-term effects, his tone has become more measured.
Trump’s reluctance to make firm economic predictions was notable, given his past eagerness to tie stock market gains to his presidency. This time, however, he downplayed recent market swings, despite the turbulence following his shifting stance on tariffs.
Commerce Secretary Howard Lutnick was more confident. “Absolutely not,” he said appearing on NBC, “There’s going to be no recession in America.” And then turned his argument political: “Anybody who bets against Donald Trump, it’s like the same people who thought Donald Trump wasn’t going to win a year ago,” he said.
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iyer
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Thinking DJT perhaps is wagering that with a down economy and possible risk of a recession, it will force feds to lower interest rate perhaps by 2 points or even more. That will turbo boost the economy by allowing companies to invest in capital investments purchase (equipment that makes other goods) which in turn propels job growth (high paying jobs) and allows overall prosperity. That might be his thinking process. Talking to Jerome Powell (fed chair) did not provide any immediate rate cut(s). So now this strategy. Let us see.
March 10, 2025