Trump administration live updates: Trump plans to visit DOJ Friday: Sources

President Donald Trump spoke with major business leaders Tuesday evening, touting Elon Musk's work at the Department of Government Efficiency and the "tremendously positive impact" of his tariffs, claiming more jobs would be created in the United States.

"The tariffs are going to be throwing off a lot of money to this country. And we've been ripped off for years by other countries many, many decades," he said.

The Trump administration can cancel millions of dollars in contracts for refugee resettlement, a federal judge ruled on Tuesday afternoon.

U.S. District Judge Trevor McFadden, a Trump nominee, denied a request to block the administration from canceling $65 million in contracts between the U.S. Conference of Catholic Bishops and the State Department's U.S. Refugee Admissions Program, determining the court lacked jurisdiction to intervene.

"The Conference's motion is, at its core, seeking a purely contractual remedy," McFadden wrote, adding the issue should be resolved in the Court of Federal Claims.

The U.S. Conference of Catholic Bishops is one of 10 organizations that participates in the public-private partnership administered by the U.S. Refugee Admissions Program to help settle refugees once they enter the country. They received two contracts valued at $65 million this year, which the Trump administration canceled last month.

In denying the motion, McFadden acknowledged the "emotions" associated with the program but insisted the court cannot intervene.

"This Court is but a creature of the trifurcated structure of its Constitution," he wrote.

-ABC News' Peter Charalambous

ABC News has learned mass layoffs are expected to start Tuesday night at the Department of Education.

"Reduction in force" notices for the Education Department are expected to go out at 6 p.m. ET, according to two sources.

Nearly half of the department is expected to be eliminated, according to those sources.

-ABC News' Rachel Scott and Arthur Jones II

ABC News White House correspondent Karen Travers asked President Donald Trump further about his comments over the weekend about not ruling out a recession and how that played into market volatility these past few days.

"Do you think there will be a recession?" she asked him directly.

"I don’t see it at all. I think this country is going to boom," Trump said. "But as I said, I can do it the easy way or the hard way. The hard way to do it is exactly what I'm doing. But the results are going to be 20 times greater."

"Remember: Trump is always right," he added.