President Trump dismissed concerns about a potential recession, describing the current economic situation as a 'transition period' and expressing confidence in a strong future economy. This follows a report showing a 0.3% economic contraction from January to April, partly due to a 5% negative impact from imports.
While acknowledging the possibility of unforeseen events, Trump maintained that he is not worried about a recession. His administration, including Treasury Secretary Scott Bessent, has largely dismissed predictions of an imminent recession. The current situation comes amidst a 90-day pause on tariffs against 86 countries, a strategy that has faced criticism.
The administration's strategy has been to blame the economic downturn on the Biden administration's policies, referring to it as the "Biden 'Overhang'." Council of Economic Advisors Chairman Stephen Miran attributed the poor first-quarter GDP report to lingering problems from the previous administration.