Trump breaks silence on recession fears, ‘anything can happen’; says US economy is in ‘transition period’

US President Donald Trump asserted on Friday that his policies would ultimately spark a major economic boom in the United States, even as he admitted that a recession was possible, AFP reported.

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In the first quarter of the year, the U.S. economy—the largest in the world—unexpectedly shrank just as Trump began implementing broad tariffs as part of his economic agenda.

Here's what Trump said

Speaking with Kristen Welker on NBC's "Meet the Press," Trump described the current state of the economy as a "transition period" and expressed optimism: “I think we're going to do fantastically.”

When asked directly if the country might fall into a recession, Trump responded, "Anything can happen," but remained confident, adding, "I believe we’re going to have the greatest economy in our nation’s history. I think we’re going to experience the biggest economic boom ever."

Markets have seen considerable volatility since Trump took office, as he worked to reshape international trade by reintroducing widespread tariffs. However, stock prices climbed on Friday following the release of a strong U.S. jobs report.

Trump's comment on the US economy is similar to a social media post he shared earlier on Friday. In that message, he pointed to robust job growth and repeated his demand for the Federal Reserve to cut interest rates. 

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"We’re only in a transition stage, just getting started!" he said in a Truth Social post. The post followed the release of U.S. data that showed job growth slowed marginally for April.

Trump, who just passed his 100th day in office, has faced growing public discontent over his handling of the economy, with many economists predicting a wide range of tariffs imposed in recent months will drive up inflation and slow growth.

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As reported by CNN, the early-year economic downturn was largely caused by a growing trade deficit, driven by a surge in imports as Americans rushed to buy goods before Trump's tariffs took effect, along with reduced government spending, as per a release. Imports jumped dramatically, rising from a -1.9% rate in the previous quarter to 41.3% in the first quarter, while exports increased modestly at a 1.8% rate.

(With inputs from agencies)