President Donald Trump said on Friday that he isn’t worried about a short-term recession and repeated that the country is simply in a “transition period.” He told NBC News:
“Look, yeah, it’s—everything’s OK. What we are—I said, this is a transition period. I think we’re going to do fantastically.”
Trump made the same statement on Truth Social, writing, “We’re only in a transition stage, just getting started!” This came after job data for April showed slower employment growth.
He used the new numbers to repeat his demand for the Federal Reserve to cut interest rates, claiming that lower rates, along with steady jobs, would push the economy forward.
Trump, who recently passed his 100th day in office, is trying to control the story as criticism grows over his handling of the economy. Some economists are warning that his tariffs will lead to rising inflation and falling growth. He’s ignoring that and sticking to his line.
Stock market rises as trade deals and Fed decision loom
A new poll by Reuters/Ipsos showed that Trump’s approval rating dropped five points since his January 20 return to the White House, now sitting at 42%. People are starting to push back against the way he’s dealing with the economy.
A report from the Commerce Department showed that GDP fell for the first time in three years. The drop happened after businesses rushed to buy goods ahead of Trump’s tariffs.
Still, some economists said consumer spending and private investment were strong signs that growth might bounce back. On the market side, Wall Street is rallying. The S&P 500 recovered from the April 2 drop and posted its longest winning streak since 2004. The index went above its 50-day moving average for the first time in two months. That gain came after China showed interest in talking trade again.
Art Hogan, chief market strategist at B. Riley Wealth Management, said, “Making most of April 2 go away is what I think investors are waiting for.” Hogan said just one deal with a big trade partner could set things in motion.
“We’re about halfway through that 90-day window, and, really, I think investors would react positively to getting that first deal on the tape.” Art added that China might take more time to negotiate, but a deal with Mexico, Canada, Japan, or the Eurozone could have the same impact. “I certainly feel as though that would be monumental,” he said.
While traders chase gains, many still think the U.S. economy might slow down. Some investors believe the country could avoid a full recession, but the risk is there. Technically, the S&P 500 broke through near-term resistance, but it still hasn’t passed the 200-day moving average. The index was last around 5,694.
Katie Stockton, founder of Fairlead Strategies, said the next resistance is at 5,783, the same level from the day of the November election. She said, “We did see a breakdown that was more significant than the short-term breakout. I call it a round trip—despite the recent bounce, the damage to the charts has been done.”
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