Fears of a recession are growing as President Donald Trump’s trade wars and economic policies spark uncertainty in the stock market. Economists and financial analysts are closely monitoring indicators such as US employment rates, household income levels, and other signs of economic health.
A financial downturn could have significant impacts on American consumers, including widespread unemployment, decreased spending, and a decline in asset values like homes and retirement accounts. Some experts warn that mass layoffs, cuts in government contracts, and rapid policy changes are increasing recession risks.
However, others offer a more nuanced view. Economics professor Justin Wolfers notes that while the current economic situation is uncertain, America’s biggest economic threat remains the chaos caused by an unpredictable White House. He also points out that some economists see reason for optimism, citing narrowing job gains in certain sectors and underlying slowing growth.
Experts such as former Fed economist Claudia Sahm, Redfin chief economist Daryl Fairweather, and senior economist Dean Baker are weighing in on the topic. They note that recession indicators include an inverted yield curve, stock market crash, weakening consumer sentiment, and rising unemployment claims.
Despite Trump’s refusal to rule out a recession this year, some experts argue that the risk is not as high as it seems. Others, however, warn that the uncertainty injected by his policies could do real economic damage.
The article concludes that while there are valid concerns about recession risks, the situation remains complex and uncertain. As one expert notes, “the real threat may be coming from inside the house.”
Source: https://www.businessinsider.com/experts-sharp-insights-recession-fears-trump-tariff-doge-economy-inflation-2025-3