Washington, D.C. — President Donald Trump is downplaying rising fears that his economic policies may precipitate a recession, asserting that the long-term outlook remains positive. In an interview with NBC News, he confidently stated that the economy will be “OK,” even if short-term challenges arise.
During the interview previewed on “Meet the Press with Kristen Welker,” Trump pointed to optimistic perspectives from certain Wall Street analysts. “Some people say we’re on the brink of the greatest economy in history,” he noted, urging media attention toward those views. Despite increasing anxiety regarding economic stability, he remains resolute, describing the current phase as a “transition period” and expressing confidence about future performance.
Economic indicators reveal a troubling trend: the gross domestic product (GDP) shrank at an annualized rate of 0.3% in the first quarter, a situation exacerbated by businesses hoarding goods and a slowdown in consumer spending, according to the Commerce Department. This decline, considered the worst since 2022, significantly exceeded economists’ projections, raising concerns about the economy’s trajectory.
Trump has previously warned that his administration’s policies could result in temporary disturbances as he seeks to reshape global trade dynamics. His administration has enacted a series of tariffs, particularly aimed at China, a key trading partner, and while some tariffs have been paused, the potential for economic strain remains a topic of discussion.
Earlier this week, Trump acknowledged that these tariffs might contribute to shortages and increased costs for American consumers. “Some might think shelves will be fully stocked, but what if children end up with just two dolls instead of 30?” he said, hinting at the trade-offs Americans may face as a result of his policies.
Trump’s team has suggested that a recession may be an acceptable cost of achieving his long-term goals, with Treasury Secretary Scott Bessent advocating for a “detox” of the economy. If tariffs succeed in revitalizing domestic manufacturing, Commerce Secretary Howard Lutnick argued that weathering a recession would be justified. This sentiment has led to a cautious consideration of the potential economic fallout from these policies.
Consumption drives the U.S. economy, accounting for roughly two-thirds of its activity. Disruptions to this engine could lead to significant challenges ahead. While economic deterioration is evident, analysts state it is premature to confirm that the U.S. has officially entered a recession. The established definition indicates a recession involves a significant and prolonged downturn in economic activity across the board.
The complete interview with Trump is set to air on NBC’s “Meet the Press” this coming Sunday, providing more insight into his views on the economy and his administration’s ongoing initiatives.