Reporters — even Fox News’ Peter Doocy — grilled White House Press Secretary Karoline Leavitt on Tuesday about President Donald Trump’s handling of the economy as the stock market declines.
“Any concern here that it’s going to be harder to ask … certain federal workers to retire if they look at their retirement accounts and they’re getting rocked every day?” Doocy asked Leavitt at the White House press briefing.
“There’s great indication to be optimistic about where the economy stands,” Leavitt responded. “Workers should bet on President Trump.”
Doocy also asked her later in the briefing if she was sure “nobody at the White House shorted the Dow.”
“We are in a period of economic transition,” she continued.
The stock market has had a rocky past few days, including Monday, when it posted its worst performance of the year. The Dow dipped by 2.1%, the S&P 500 dropped by 2.7%, and the Nasdaq fell by 4%. The falls continued Tuesday, as the Dow fell another 478 points (1.1%), the S&P 500 dipped almost 0.8%, and the Nasdaq declined nearly 0.2%. All three indexes are below their recorded Election Day levels last November.
The declines come amid growing consumer fears that a recession is approaching. Trump on Monday sidestepped a question about whether his trade war could lead to a recession, saying, “I hate to predict things like that.” Investors are worried that his aggressive tariff policies could lead to a recession.
Leavitt downplayed such concerns, saying Trump had a plan for the economy and was working to repair damage left by the Biden administration. And she argued that Trump’s tariffs are meant to boost American manufacturing and wealth, despite history showing that tariffs lead to increased costs for consumers — a point Leavitt rejected when a reporter pressed her:
“I’m sorry, have you ever paid a tariff? Because I have,” a reporter asked Leavitt. “They don’t get charged on foreign companies; they get charged on the importers.”
“I think it’s insulting that you’re trying to test my knowledge of economics,” the press secretary said. “I now regret giving a question to the Associated Press.”
