When markets closed on Monday, the S&P 500 and the Dow both posted their worst day of the year. The S&P 500 fell 2.7%, and the Dow dropped 890.01 points, or 2.1%, ending the day at 41,911.71.
Treasury Secretary Scott Bessent told CNBC on Friday that there could be a “detox period” for the economy if the Trump administration continues to cut government spending. Two days later, speaking with Fox News, Trump responded to a question about the possibility of a recession, saying the country will likely go through “a period of transition.”
“I hate to predict things like that,” Trump 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 … it takes a little time. It takes a little time, but I think it should be great for us.
“What I have to do is build a strong country,” Trump added. “You can’t really watch the stock market.”
TRUMP’S ‘LITTLE DISTURBANCE’ COULD TURN INTO A RECESSION, ECONOMISTS WARN
Investors have been closely watching the stock and bond markets as new tariffs against Mexico, Canada, and China went into effect earlier this month and forecasted economic growth declined. Trump, one day later, rolled back most of the tariffs on Mexico and Canada.
U.S. GDP has grown for 11 straight quarters, but some economists have warned that that trend could be over soon. GDP advanced by 2.8% in all of 2024, according to a preliminary estimate by the government.
