President Trump says the U.S. economy "may be" headed toward recession

U.S. President Donald Trump said recession “may be” on the horizon on Monday. (Getty Images)

President Trump said Monday that the U.S. might be sliding into a recession due to the slowing of economic activity in the wake of the coronavirus outbreak.

Trump's statement comes on the day the stock market plummets over 3000 points as investors desert stocks despite the Federal Reserve slashing interest rates to stave off an economic recession.

In addition to the lowered interest rate, the Federal Reserve will buy $500 billion for debt security through the U.S. Treasury, and $200 billion to stabilize home loans.

Trump, in a press conference addressing the global pandemic, admitted a recession could be inevitable.

"It may be," Trump said when asked about the U.S. potentially nose-diving into a recession.

"We have an invisible enemy. We have a problem that, a month ago, nobody thought about," Trump said.

As President, many times, Trump has taken credit for the boost in the stock market, but today Trump claims he is not the driving force behind Wall St success or failure.

"I don't, number one, determine recession," Trump said.

As the U.S. guidelines for social distances have become more restrictive, workers in restaurants, retail, entertainment, and travel are likely to lose their jobs. These job losses mean less money pumped into the U.S. economy, causing Wall St investors to build more conservative portfolios.

The Federal Reserve says the new rates will remain until COVID-19's outbreak releases the stranglehold it has on the economy. 

"The Committee expects to maintain this target range until it is confident that the economy has weathered recent events," The Federal Reserve said in a statement.

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