Several economic forecasts for 2025 have been scaled down in recent weeks as a new presidential administration has made many changes in two months. Measures of business and consumer confidence have decreased under threats of tariffs and large swaths of the federal workforce have faced layoffs.

Key Takeaways Treasury Secretary Scott Bessent said the administration's goal was to have a "smooth transition" to an economy with less federal spending.Last week, Bessent stoked fears of a recession by warning of a period of "detox" from high government spending as Trump slashed programs and workers.