In the face of waning consumer and business confidence, White House Press Secretary Karoline Leavitt said on March 11 that the Trump administration’s economic policies would lead to long-term economic gains and that the recent stock market turmoil was part of temporary growing pains.
Economic anxiety deepened in February as households and small businesses braced for a challenging year ahead, with reports from the Federal Reserve and the National Federation of Independent Business (NFIB) highlighting growing financial pessimism.
Amid the downturn, the White House said that current economic uncertainty is part of a necessary transition away from the Biden administration’s economic policies that it said led to an “economic disaster.”
“We are in a period of economic transition,” Leavitt said at a press briefing on March 11. “We are in a period of transition from the mess that was created under Joe Biden in the previous administration.”
Leavitt pointed to high delinquency rates on credit card loans—which hit a 12-year high under the previous administration—as well as high inflation that eroded wage gains during Biden’s term, to support the White House view that some short-term difficulties are inevitable as the economy transitions from an “economic nightmare” to “a golden age of American manufacturing.”She acknowledged consumer unease and said that Trump’s agenda—centered on deregulation, tax cuts, and a revitalized manufacturing sector—would ultimately restore confidence. She noted previous economic gains under President Donald Trump as evidence that his policies work, asking Americans to remain patient as the economy adjusts.
Expectations for wage growth stagnated and consumer confidence in stock market gains declined, with only 37 percent believing share prices would be higher in 12 months—the lowest level since December 2023. Despite the increase in financial uncertainty, inflation expectations remained relatively stable, with short-term inflation projected to rise slightly to 3.1 percent, while medium- and long-term expectations held at 3 percent. However, anticipated price increases for essential goods—including gas, food, medical care, rent, and college tuition—suggest continued strain on household budgets.
“Uncertainty is high and rising on Main Street and for many reasons. Those small business owners expecting better business conditions in the next six months dropped and the percent viewing the current period as a good time to expand fell,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Inflation remains a major problem, ranked second behind the top problem, labor quality.”
Inflation remains a key challenge, with the share of small business owners raising average selling prices jumping 10 points to 32 percent, the largest increase since April 2021. Planned price hikes also rose, with 29 percent of businesses expecting to increase prices in the next three months—an 11-month high. Labor shortages and costs continue to put pressure on business operations, with 38 percent of owners struggling to fill open positions and 19 percent citing labor quality as their most pressing issue.
Trump has maintained that his policies may cause short-term pain and will ultimately strengthen the economy. However, some business leaders and economists warn that rising costs, supply chain disruptions, and potential retaliatory tariffs could fuel inflation and slow growth.
Delta Air Lines CEO Ed Bastian echoed these concerns, noting that economic uncertainty was already affecting corporate travel budgets.
“We saw companies start to pull back. Corporate spending started to stall,” Bastian told CNBC. “Consumers in a discretionary business do not like uncertainty.”
