Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Investing.com-- U.S. President Donald Trump did not rule out the possibility of a U.S. recession this year and flagged short-term economic turbulence from his trade and fiscal agenda in a Sunday Morning Futures interview on Fox News.
When asked about the possibility of a recession, Trump said he did not wish to make predictions, stating that there was a “period of transition because what we’re doing is very big.”
Trump also declined to offer any clear signals on how his trade tariffs will play out, warning that they could increase in the coming months. But he reiterated his warnings of reciprocal trade tariffs against major trading partners from April 2.
The 47th President’s first six weeks in office were marked by heightened uncertainty over his tariff agenda and their implications for the economy, especially inflation. Trump withdrew 25% trade tariffs on a bulk of Canadian and Mexican goods less than 48 hours after imposing them last week, while still warning that he will impose higher trade duties in April.
Trump had initially proposed to impose Canadian and Mexican tariffs in February, before postponing them by a month.
Trump imposed a 20% duty on China last week, drawing ire and retaliation from Beijing.
Investors and consumers have fretted over the inflationary impact of the tariffs, given that they will be borne by local importers.
This comes amid some signs of strain in the U.S. economy, as recent data points showed cooling consumer spending and a mildly softer labor market.
On Sunday, Trump also downplayed recent declines in the stock market, contrasting his prior comments bragging about stock market performance under his first term.
While Wall Street had initially rallied after Trump’s election victory in November, stock markets have struggled to make headway so far in 2025, especially amid heightened economic uncertainty.
Trump’s agenda in his second term has so far focused largely on protectionist trade policies, cracking down on immigration, slashing government spending and scaling back what he sees as unnecessary regulations on U.S. businesses.
Trump’s Commerce Secretary Howard Lutnick ruled out the potential for a recession during a separate interview with NBC News on Sunday.
Treasury Secretary Scott Bessent, however, had warned last week that the economy could be in for some headwinds during Trump’s transition.