Trump acknowledges U.S. 'may be' headed for recession, says Americans could be hunkered down until summer

WASHINGTON – President Donald Trump acknowledged Monday that the U.S. economy “may be” heading toward a recession because of the coronavirus but predicted growth would bounce back strongly.

“Well, it may be,” Trump said in the White House in response to a question about whether the economy is “headed” toward a recession.

“We’re not thinking in terms of recession. We’re thinking in terms of the virus,” the president continued. “Once we stop, I think there’s a tremendous pent-up demand both in terms of the stock market, in terms of the economy.”

The president’s remarks came as rising fears about the impact of the coronavirus on the economy sent stock prices into freefall Monday. The Dow Jones industrial average collapsed 2,999 points, or 12.9%, to close at 20,188.52 – its second worst percentage loss in history behind the "Black Monday" crash in 1987.

Unlike during his Rose Garden appearance on Friday, when his decision to declare a national emergency appeared to drive prices up, the president's remarks Monday did not appear to ease investor concerns. Instead, the market selloff continued as the president and other officials suggested that Americans would have to continue to practice social distancing into the summer.