Trump’s economic policies have led to long-term economic benefits, and the recent stock market turmoil is a temporary pain of growth, the spokesperson said.
White House spokesman Karoline Leavitt said on March 11 that in the face of a decline in consumer and business trust, the Trump administration’s economic policies have led to long-term economic benefits, and the recent stock market turmoil is part of a temporary pain in growth.
Reports from the Federal Reserve and the National Federation of Independent Businesses (NFIB) deepened economic unrest in February as households and small businesses were in a challenging year.
Amid the recession, the White House said current economic uncertainty is part of a necessary transition to move away from the Biden administration’s economic policies, which it said led to a “economic disaster.”
“We are in a period of economic transition,” Leavitt said at a press conference on March 11.
Leavitt pointed out that credit card loans have a high delinquency rate. This pointed to a 12-year high under the previous administration, but it supported the high inflation rate that eroded wage increases during Biden’s term, and the White House’s difficulties that shifted from an “economic nightmare” to a “golden age of American manufacturing,” so short-term difficulties were inevitable.
She acknowledged consumer anxiety and said Trump’s agenda (deregulation, tax cuts and revitalized manufacturing sector) would ultimately regain confidence. She noted that previous economic benefits under President Donald Trump called on Americans to remain patient as the economy adapted, as evidence that his policies were at work.
Only 37% believe that expectation for wage growth will stagnate, consumer confidence in the stock market will decrease, and stock prices will rise in 12 months. This is the lowest level since December 2023. Despite increasing fiscal uncertainty, inflation expectations remained relatively stable, with short-term inflation rising to 3.1% and medium- and long-term expectations still maintained long-term expectations at 3%. However, the expected price increases for essential products, such as gas, food, healthcare, rent and university tuition, continue to be a continuing burden on households.
“Uncertainty is high and rising for Main Street and many reasons,” NFIB chief economist Bill Dunkilberg said in a statement: “Inflation remains a major issue and ranks second only after top issues, working quality.”
Inflation remains a key issue, with SME owners’ share rising average selling prices, up 10 points, the biggest increase since April 2021. Planned prices also rose. Labor shortages and costs continue to put pressure on business operations, with 38% of owners struggling to fill open positions, and 19% cited work quality as the most pressing issue.
Trump argues that his policies could cause short-term pain and ultimately strengthen the economy. However, some business leaders and economists have warned that rising costs, supply chain disruptions and potential retaliatory tariffs could drive inflation and slow growth.
Delta CEO Ed Bastian reflects these concerns, noting that economic uncertainty is already affecting businesses’ travel budgets.
“We saw businesses begin to be pulled back,” Bastian told CNBC. “Consumers in discretionary businesses don’t like uncertainty.”
