In a Fox News interview, a chief investment officer claimed that US stocks dropped after Donald Trump gave an uncertain response about a possible recession.
US stock markets took a hit following Donald Trump’s concerning response to questions about a potential recession, sparking investor anxiety.
Trump’s response raises concerns about a recession
US stocks dropped sharply after President Donald Trump gave a vague response when asked about the possibility of a recession.
During a recent interview with Fox News, Trump was questioned about the economic outlook. Instead of providing reassurance, he referred to the current situation as a “period of transition.”
This uncertainty has fueled concerns among investors and contributed to market volatility.
Tariffs and economic uncertainty impact the stock market
The Trump administration has introduced new tariffs on imports from Canada and Mexico. These include a 25 percent tariff on all goods entering the US.
In response, both neighboring countries have imposed counter-tariffs. This trade tension has further unsettled the financial markets.
Major stock indexes experience significant losses
Last week, the S&P 500 suffered a steep decline of 3.1 percent. Investors remain on edge as economic uncertainty grows.
David Bahnsen, chief investment officer at the Bahnsen Group, explained the market’s instability.
“The talk of tariffs is, in a lot of ways, worse than the implementation of them,” Bahnsen told Fox News. “Speculation and chaos only foster uncertainty.”
Experts predict short-term economic damage
Bahnsen believes the administration is unsure how the tariff situation will unfold.
Additionally, he also predicts continued economic disruption in the short term.
He added: “I do not believe the administration knows how the tariff situation will play out, but if I were a betting man I would say that it will persist long enough to do damage to economic activity for at least a quarter or two, and ultimately result in a deal with different countries that make everyone wonder why we went through all the fuss.”
Trump’s comments and ongoing trade tensions have heightened fears of a recession. Investors are closely monitoring the situation, hoping for clarity in economic policy.
For now, the stock market remains unpredictable, with volatility expected to persist in the coming months.