White House Dismisses Recession Fears as Stocks Plunge

Amidst a significant drop in U.S. stock markets, key economic adviser Kevin Hassett pushed back against concerns of a recession linked to President Trump's tariff policies. Despite a survey indicating increasing pessimism among consumers regarding their financial situations, Hassett maintained optimism about the economy, citing potential benefits from Trump's tariffs on Canada, Mexico, and China. He acknowledged some short-term economic blips but attributed them to the timing of tariff implementations and issues inherited from the previous administration. The Atlanta Federal Reserve's GDPNow tracker suggests the economy could contract in the first quarter, but Hassett predicted this to be a temporary phenomenon. Meanwhile, economists express heightened recession risks due to Trump's inconsistent trade policies, with Goldman Sachs adjusting its growth forecast downward. Trump's administration continues to face scrutiny as market volatility raises concerns about the impact of tariff strategies on economic stability.