The White House has described the recent economic turbulence marked by falling stock prices and a weakening job market as part of an “economic transition.”
Press Secretary Karoline Leavitt told reporters at a press briefing that the current surge was blamed on what she described as an economic “mess” left by the previous Biden administration.
“We are in a transition from an economic nightmare to a golden age of American manufacturing under a president who doesn’t know what he’s doing and has never worked in the private sector in his life,” Leavitt said at a contentious press conference.
Leavitt’s comments echoed sentiments expressed by President Donald Trump over the weekend. Speaking on Fox News’ Sunday Morning Futures program, Trump was asked if he expected a recession in 2025. Trump responded: “I hate to predict these things. There’s a transition period, because what we’re doing is so big.”
Commerce Secretary Howard Lutnick took a more definitive stance, telling NBC's Meet the Press, “There will be no recession in America.”
But some economists are skeptical of the administration’s optimistic outlook. Stephen Henn, an assistant professor of economics at Sacred Heart University, warned that the risk of a recession in 2025 is still high.
“The probability of a recession in 2025 is quite high,” Henn said, noting that economic difficulties could affect individuals differently depending on their financial situations.
“If the reduction in government spending is not offset by increases in consumer spending, business investment and/or net exports, we are very likely to see a recession,” Henn added.
*This is not investment advice.
