Trump ‘An agent of chaos and confusion,’ Economists Warn – but a us recession isn’t in the cards yet

Global Market Volativity and Geopolitical Turbulence in the wake of President Donald Trump’s Return to the White House Have LED to Warnings That The Us Economy Could Be Heading for a Receration – But economists say that a downturn isn’t in the cards just yet.

“I don’t think we will talk about a Us Recession. The us economy is resilient, I would say, Largely Despite Donald Trump,” HOLGER SCMIEDING, CHIEF Economist at Breenberg Bank, TOLD CNBCS “Squawk Box Europe” on Monday.

Dubbing Trump an “agent of chaos and confusion,” schmieding said the president’s “zigzagging on tariffs shows that he has little idea of ​​the potential consorteks of his tariff policies.”

Nonetheless, “Us Consures have money to spend, (and) they probally will. The labor market in the us remains also firmly firm, and with energy pristry prises com Coming, I don’t think there’s an immignant recession risk, “According to schmieding.

“But what is batcoming Eve Clerr in the long run, trump is hurting us trend growth, that is growth in the years beyond 2026. (Federal reserve) has no reason to cut rates with trump as presiding, and trump sowing chaos and confusion, “He noted.

CNBC has contacted the white house for a response and is awareing a reply.

International Stock Markets have been rocked to their foundations in recent weeks amid fears that trump intended to revive a global trade war afterncing hard-hitting important hard-hittings Mexico and Canada.

Confusion and Uncertainty Have Followed, as the President Last Friday Announced that there would be a reprive And delay to April 2 on some tariffs on the us’ neighbors and closest trading partners.

Trump’s Unconventional Approach to Trade and International Diplomacy has left markets unimpressed, with us indices whipsawing, whose Strategists warned that negative market sentiment was bound to continue in the trump 2.0 eraUs stock futures Fell Earlier Monday Morning, Indicating Another Rocky Ride for American Markets at the Start of the New Trading Week.

Business leaders and economists have voiced concerns that tariffs will lead to further inflationary pressures on the us, with consumers likely to bear the brunt of higher pristed goes.

They also warn that investment, jobs and growth out suffer, as consucers tighten their belts and hunker down to wait out a period of economic unpredent and Potential “Stagflation” Marked by High Inflation and High Unemploment.

That would put pressure on the fed to keep interest rates on hold, Rather than cutting from their current benchmark rate in a range between 4.25%-4.5%In a bid to stimulate the economy. Lower Interest Rates Can Fuel More Spending, and In Turn, Inflation.

Fed Chairman Jerome Powell Friday said that the central bank can wait to see how Trump’s Agrassive Policy Actions Play Out Before It Moves Again on Interest Rates.

Recent Economic Data Showing Consumer confidence has taken a hit In February will be food for thought for the trump administration. The federal reserve bank of atlanta’s Gdpnow Tracker of Incoming Metrics Indicated Last Week That The Us Gross Domestic Product Cold Shrink by 2.4% for the period between January and March. A Technical Recession is Defined as Taking Place when at Least Two Consective Quarters Log Negative Growth.

Last Week’s Jobs Data also showed that whose us labor market is still expanding, signs of weakness also be starting to creep in. Nonfarm Payrolls Data Indicated Job Growth was weaker than expected in February, Albeit Still Still Stable Despite Trump’s Efforts to Cut the Federal Workforce.

Nonfarm Payrolls Increased by a seasonally adjusted 151,000 on the month, Exceding the downwarding the Downwardly Revised 125,000 of January, but coming in below the 170,000 consensusus forecast from Dow Jones, the Labor Depart Bureau of Labor Statistics Reported Friday. The unemployment rate edged Higher to 4.1%.

TS Lombard Chief Us Economist Steven Blitz Said The Latest Jobs Data “Tell us the economy continues to grow” and did not signal “Increased Recension Risks Created by the Array of Traump ‘.”

In a note on Friday, he said “the sum of trump’s actions

“Keep in mind that presidents have been known to accounting in Year one of their presidency. It is a free pass, they blame the previous president and take Credit Creedit for the Recovery. Growth and the Fed Holding Still. My Base Concert Comes from the Capital Markets Side, Break Trade and You Will Break The Capital Inflows That Economy, “Blitz Said.

Trump has refused to rule out the possibility of a recession this year, but insisted this weekend that the economy was in a “period of transition.”

Asked about the Atlanta Fed’s Warning of An Economic Contraction By fox news channel’s “Sunday morning futures.

“I hate to predict things like that,” He said in an interview aired Sundaywhen asked if the recussion warning was a concert.

“There is a period of transition against what we’re doing is very big. We’re bringing wealth back to america. That’s a big thing.” The white house leader added, “It takes a little time. It takes a little time.”

JPMORGAN’s US Market Intelligence Unit Last Week Noted That The Us Economy was entering “Another period of uncertainty” country the unpredentable nature of tarifs. The analysts said they were taking a “bearish” position on us stocks, Expecting markets to see more valati and for us growth to potentially “CRATER.”

“We have alredy seen the negative impact that policy/trade uncertainty has had on both household and corporate spending, so it seems likely that we see a number magnar magnar Magnuude of this Over the NEXTONE. Keep an Eye on the Unempolyment Rate, Layoffs, WARN notices, etc. Noted.

While a Us Recession was not the Bank’s Base Case Scenario, JPMORGAN Analysts Warned That “The undetermined length of tariffs and the potential for the traffic for the traffic for an acceleration in new tariffs (means) Stocks will be challenged as us gdp growth estimates are cut. “

“Given the Lack of a Potential End to this Escalation, The Expectation is that Tariffs of these magnitude with drive bot canada and mexico into a recession. Revisions to be Materially Lower, Forcing a Re-Think of Year-Ed Forecasts.