In This Story
White House press secretary Karoline Leavitt framed the current turmoil in the U.S. economy — punctuated by sinking stock prices and a softening job market — as hallmarks of a “period of economic transition.”
During a sometimes contentious afternoon press conference at the White House on Tuesday, Leavitt blamed the current volatility on the “mess” left behind by the Biden administration.
“We are in a period of economic transition from that economic nightmare under a president who had no idea what he was doing, never held a private sector job in his life, into a golden age of American manufacturing,” Leavitt said.
Leavitt was echoing comments made over the weekend by President Donald Trump.
President Trump made headlines and rattled markets when he was asked on Fox News (FOXA-1.87%)’ “Sunday Morning Futures” whether he’s expecting a recession this year by replying: “I hate to predict things like that. There is a period of transition, because what we’re doing is very big.”
Commerce Secretary Howard Lutnick, though, was more specific, saying on NBC’s (CMCSA+0.08%) “Meet the Press” that “there’s going to be no recession in America.”
Economists in general, though, are less rosy in their outlook.
“The chances for a recession are quite high for 2025,” said Stephen Henn, adjunct professor of economics at Sacred Heart University. He added that how much people feel it might vary greatly depending on their circumstances.
“If the reduction in government spending is not outweighed by an increase in consumer spending, business investment, and/or net exports, then we are very likely to see a recession,” Henn said.