Amid growing concerns over tariffs, a cooling labor market, and signs of slowing growth, Trump reassured the public that these disruptions are temporary and necessary for long-term prosperity.
Amid growing concerns over tariffs, a cooling labor market, and signs of slowing growth, Trump reassured the public that these disruptions are temporary and necessary for long-term prosperity.
“There is a period of transition, because what we’re doing is very big,” Trump said in an interview on Fox News’ Sunday Morning Futures. “We’re bringing wealth back to America. … It takes a little time, but I think it should be great for us.”
The administration has framed the current economic challenges as remnants of the previous administration’s policies, pointing to high levels of government spending under former President Joe Biden. Treasury Secretary Scott Bessent described the adjustment as a necessary "detox period" from excessive federal stimulus, arguing that the economy must shift from reliance on public spending to private sector-driven growth.
Trump, who closely tracked stock market performance during his first term, suggested investors should take a broader view.
“What I have to do is build a strong country,” he stated. “You can’t really watch the stock market.”
Wall Street has reacted skittishly, with markets fluctuating as uncertainty over tariffs and economic policy persists. The Atlanta Federal Reserve’s GDPNow model projects a 2.4% contraction for the first quarter, which, if realized, would be the biggest economic pullback since the COVID-19 pandemic.
However, National Economic Council Director Kevin Hassett downplayed these concerns, calling the dip “a very, very temporary phenomenon” and attributing it to the transition from Biden-era policies.
One area of concern is the labor market. February’s payroll report showed a net gain of 151,000 jobs, but underlying data revealed potential weaknesses. The broader measure of unemployment, which includes discouraged workers and those in part-time jobs who prefer full-time work, jumped to 8%—its highest level since 2021.
Additionally, consumer spending, which accounts for over two-thirds of GDP, showed signs of retreat in January, fueling worries about economic momentum.
Despite these warning signs, Commerce Secretary Howard Lutnick dismissed recession fears, stating on Meet the Press, “There’s going to be no recession in America. … If Donald Trump is bringing growth to America, I would never bet on recession—no chance.”
Economic concerns have been exacerbated by a widening trade deficit, which hit a record $131.4 billion in January. Some of this increase is attributed to companies stockpiling goods ahead of impending tariffs.
Market analysts remain divided on whether the economy is heading for a prolonged slowdown. Goldman Sachs recently revised its 2025 GDP forecast down to 1.7% and raised its recession probability to 20%.
Still, the Trump administration remains firm in its stance that the short-term economic adjustments will lead to long-term strength.
“What we’re doing is we’re building a tremendous foundation,” Trump reiterated.
Jay Goldberg is a staff writer at TechEchelon covering technology, markets, and policy. He files the breaking news and deal coverage that move the publication's core desks.
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