President Donald Trump stayed out of the public eye today as the US stock market took a sharp dive after he hinted that a recession might be possible.
When asked about the market’s reaction, the White House defended Trump’s economic policies, claiming they helped drive investment and pointing to his past achievements in the economy.
“Since President Trump was elected, industry leaders have responded to President Trump’s America First economic agenda of tariffs, deregulation, and unleashing American energy with trillions in investment commitments that will create thousands of new jobs. President Trump delivered historic job, wage, and investment growth in his first term, and is set to do so again in his second term,” said White House spokesperson Kush Desai.
Following a rough day on Wall Street, Trump chose not to address the crisis with reporters – unusual for a commander in chief who often seeks the spotlight.
Meanwhile, former US Treasury Secretary Larry Summers warned that Trump’s back-and-forth on tariffs could hurt the economy even further, causing both a slowdown and rising prices.
The market’s steep drop was mostly fueled by concerns over Trump’s tariffs. Summers, in an interview with CNN’s Kasie Hunt, said the unpredictable nature of the administration’s policies could push the US into a recession.
“We’re getting the worst of both worlds,” Summers said. “This is pretty much a self-inflicted wound.”
He added that fears of future supply shortages or high tariffs could drive prices up. Summers also cautioned that the unpredictability of Trump’s policies could create a dangerous cycle, where a weakening economy leads to weaker markets, which in turn, weakens the economy even more.
