Transcript for White House dismisses fears of a recession
We go to the white house where the president is trying to tamp down talk of a recession after a volatile week on wall Street, and an escalating trade war with China. ABC's Terry Moran is tracking it from the white house. Good morning, Terry. Reporter: As you know, the presidents get the credit when the economy is good, and the blame when the economy is bad, and right now with some signs of economic weakness and the markets growing anxious, president trump is playing defense. President trump wrapping up his New Jersey vacation return to the white house facing a stark question. Is his trade war with China tanking the U.S. Economy? I don't see a recession. I mean, the world is in a recession right now, and -- although that's too big a statement, but if you look at China, China is doing very, very poorly. Reporter: But this is a critical moment for the president. Last week, markets reeled. The Dow plunging 800 points in one day, then rallied. All the turbulence linked in part to trump's trade war. He keeps insisting the U.S. Is China is paying for the tariffs, for the 100th time, and I understand tariffs very well. Other countries, it may be that if I do things with other countries, but in the case of China, China is eating the tariffs. Reporter: But most economists disagree. They think that Americans are taking the hit for most of trump's tariffs. So the white house strategy now, shift the blame for any slowdown to the fed. The federal reserve interest rate hikes cause for growth. Reporter: The stakes couldn't be higher. His campaign argument is how well he has maned the economy. You have no choice but to vote for me because your 401ks, down the tubes. Everything will be down the tubes. Reporter: But with more signs pointing to economic weakness, Democrats now sense the president may be vulnerable on his signature issue. We have got to replace him in office if we're going to get this economy back on track. Pretty much nothing in the trump administration says turns out to be true. If they say the economy is in great shape, I would be very worried. Reporter: It's important to note there is still plenty of good news on the economy. It's still growing and producing jobs and consumers are spending. Politically for president trump, this is the whole ball game, and so any clouds on the horizon worrisome for him and his campaign. No question about that. In the meantime, the president continues to push this curious idea he might want to buy on behalf of the United States, Greenland, but that massive island clearly not for sale. Reporter: That's right, as one of the New York headlines said. Greenland to president trump, it's not going to happen. He's not the first one to try it. President Truman and Eisenhower sought to buy Greenland. It has a lot of important minerals up there, and it's for president trump, as he said, just another big real estate deal. George? Terry Moran, thanks very much.
This transcript has been automatically generated and may not be 100% accurate.