As I said, even right-leaning alt-media commentators are saying a recession is possible given the economic shambles Trump inherited.
Headline (paywall):
US Treasury Secretary Says White House Trying to Stave Off Financial CrisisHowever, the secretary said there are ‘no guarantees’ that a recession will not occur.
Treasury Secretary Scott Bessent said on Sunday that policies initiated by the Trump administration are designed to head off a financial crisis that may be the result of major government spending over the past several years but cautioned there are “no guarantees” that no recession will occur.
There have been concerns that recent policies, such as tariffs, could lead to a financial crisis or a recession. When asked by an NBC News reporter about a recession occurring, Bessent said that the Trump administration is working to prevent a more serious crisis and that there is no reason for a recession to occur.
“There’s no reason that it has to. But I can tell you that if we’d kept on this track, what I could guarantee is we would have had a financial crisis. I’ve studied it. I’ve taught it. And if we had kept up at these spending levels, that everything was unsustainable,” Bessent said. “We are resetting and we are putting things on a sustainable path.”
President Donald Trump has said he wants the government to reduce spending and eliminate waste and fraud. Early on in his second term, he signed an order to create the Department of Government Efficiency (DOGE), led by presidential adviser Elon Musk, to reduce spending on certain programs that are deemed wasteful or fraudulent.
Meanwhile, the Trump administration has issued tariffs on aluminum, steel, lumber, and a range of goods and has levied 25 percent duties on all products coming from Mexico and Canada over illegal immigration and drug trafficking. Trump also placed additional tariffs on products coming from China over what the administration says is the Chinese regime’s inability to deal with the making of fentanyl precursor chemicals that make it into the United States.
In the past several weeks, U.S. stock indexes such as the Dow Jones Industrial Average and Nasdaq have seen decreases. In the past 30 days, the Dow has dropped by about 6.4 percent, down by more than 2,800 points, while the Nasdaq has dropped by more than 10 percent, down by more than 2,000 points.
How much do you trust the stock market as an economic indicator?
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