Musk’s recession prediction comes during a delicate at a time when the President’s economic agenda is the source of growing concern among executives, including JP Morgan Chase CEO Jamie Dimon, who warned last week of a “crack in the bond market” as investors get skittish about the fiscal solvency of the U.S.
Those jitters have grown in recent weeks as Trump seeks to push through a “big beautiful bill” to cut taxes that the non-partisan Congressional Budget Office says will add $2.4 trillion to the national debt over the next decade.
Meanwhile, Trump’s signature tariff policy—which has resulted in higher prices on imports and empty containers at U.S. ports—remains unpopular in many quarters. On Thursday, members of Congress questioned Commerce Secretary Howard Lutnick, including Rep. Madeleine Dean (D-Pa) who claimed the tariffs have led Wal-Mart to raise the price of bananas by 8%. Lutnick replied that tariffs can be avoided by building in the U.S., but Dean retorted “We cannot build bananas in America.”
As of Thursday afternoon, it was unclear how the Musk-Trump spat will affect the progress of Trump’s “big beautiful” tax bill, or if the President would follow through on his plans to end contracts with Musk’s companies.
