Trumps says economy is in ‘transition period, downplays recession concerns

President Donald Trump dismissed worries Friday about a short-term recession, saying the U.S. economy is in a “transition period” and the country will “do fantastically.” 

“You say, ‘Some people on Wall Street say.’ Well, I’ll tell you something else: Some people on Wall Street say that we’re going to have the greatest economy in history,” Trump told Kristen Welker in an interview with NBC News, after she asked about Wall Street concerns that the possibility of a recession is increasing. 

“Why don’t you talk about them? Because some people on Wall Street say this is the greatest thing that ever happened.”

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When asked if the president thinks a recession is OK in the short term while trying to reach his long-term goals, Trump said, “Yeah, everything’s OK. What we are, I said this is a transition period. I think we’re going to do fantastically.”

Recession fears have grown recently after Trump imposed tariffs on various countries, including China, that could lead to higher prices and supply chain issues. 

Trump has also seen a slight dip in his approval ratings for his handling of the economy since he took office. 

“Gasoline just broke $1.98 a Gallon, lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs,” Trump wrote on Truth Social Friday.

“Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!! Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!” 

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Earlier this week, the president acknowledged tariffs could lead to higher prices in the short term.

“You know, somebody said, ‘Oh, the shelves are going to be open.’ Well, maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally,” Trump said at the end of a Cabinet meeting Wednesday while taking questions.

“But we’re not talking about something where we’ll have to go out of our way,” he added. “They have ships that are loaded up with stuff, much of which we don’t need. And we have to make a fair deal. We’ve been ripped off by every country in the world, but China, I would say, is the leading one.”