Donald Trump says US economy in transition period, insists 'everything's OK'

US President Donald Trump has described the current state of the US economy as a "transition period," insisting that the country will come out stronger. In an interview with NBC News on Friday, Trump played down the possibility of a short-term recession, saying, "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."

He also stated that the US economy is performing well in terms of jobs and asked the Federal Reserve to reduce interest rates. Trump made the remarks at a time when most financial analysts and Wall Street experts are pointing towards a potential recession, particularly after recent changes in his tariff policies.

When NBC’s Kristen Welker asked him if he was worried about a recession, Trump simply said, "No." On whether a recession could still happen, he added, "Anything can happen, but I think we’re going to have the greatest economy in the history of our country."

WALL STREET WORRIES BUT TRUMP IS CONFIDENT

Trump's confidence seems to be at odds with increasing worries from Wall Street analysts and economists. In their view, the president's hardline tariff approach could come back to haunt him. The tariffs, particularly against China, could be inflationary and damage economic growth. However, Trump brushed aside such fears and countered that there are also positive voices on Wall Street.

"Well, you know, you say, ‘Some people on Wall Street say’ — well, I tell you something else. Some people on Wall Street say that we’re going to have the greatest economy in history. Why don’t you talk about them?" Trump said from his Mar-a-Lago resort in Florida.

"There are many people on Wall Street (who) say this is going to be the greatest windfall ever happen," he added.

Although Trump is optimistic, public approval of him is waning. According to the latest Reuters/Ipsos poll, only 42% of Americans approve of his performance today.

The US Department of Commerce just released numbers indicating that gross domestic product (GDP) fell for the first time in a three-year period. Many experts estimate that numerous businesses rushed to bring goods before the imposition of new tariffs, swelling numbers temporarily.

TARIFFS, TRADE, AND CONSUMER

Trump has imposed higher tariffs on Chinese goods by as much as 145% in a tit-for-tat move. Although these actions were intended to shield American industries, economists believe that they could trigger the prices of common items.

Meanwhile, the president shrugged off such worries. In a Cabinet meeting, Trump said, "Somebody said, ‘Oh, the shelves are going to be open.’ Well, maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally."

Earlier this month, Trump temporarily paused larger tariffs for 90 days.

ALSO READ: US economy shrinks for first time in 3 years amid Trump tariff impact