Trump Leaves Door Open for Possible US Recession in 2025 Amid Economic Uncertainty

By Staff, Agencies

Former President Donald Trump has declined Sunday to rule out the possibility of a US recession in 2025, stating in a Fox News interview that economic transitions take time.

"I hate to predict things like that," he said, adding that his administration’s policies aim to bring wealth back to America.

“There is a period of transition, because what we’re doing is very big – we’re bringing wealth back to America,” he said, adding, “It takes a little time.”

While Trump remained vague, Commerce Secretary Howard Lutnick dismissed recession fears, asserting on NBC’s “Meet the Press” that there is "absolutely" no risk of an economic downturn. However, financial markets and consumer confidence paint a more uncertain picture.

Stock markets just concluded their worst week since the November election, while consumer confidence has declined as Americans brace for rising prices due to Trump’s shifting tariff policies.

The administration's tariffs on China, Canada, and Mexico—with changing deadlines and targets—have contributed to economic volatility.

Adding to concerns, government layoffs led by Trump’s advisor Elon Musk have heightened uncertainty. Meanwhile, a Federal Reserve index now forecasts a 2.4% GDP contraction in early 2025, the worst since the COVID-19 pandemic.

Economists remain cautious, with Goldman Sachs raising the odds of a recession to 20% over the next year, while Morgan Stanley predicts slower economic growth.

Despite the concerns, Trump has downplayed the risks, stating in his State of the Union address that Americans should expect only “a little disturbance” as his policies take effect.