Dow Jones down nearly 3,000 points, Trump concedes recession possible

The Dow Jones Industrial Average on Monday registered an historic drop of nearly 3,000 points as coronavirus fears continued to spook investors, and President Trump conceded a recession was possible.

"It may be," the president said at a press conference when asked about the possibility of a recession. But he also predicted a robust economic boomerang once the worse of the outbreak was over.

"I think there's a tremendous pent up demand both in terms of the stock market and in terms of the economy,” Trump said. “Once this goes away, once it goes through and we’re done with it, I think you’re going to see a tremendous surge.”

The Dow’s descent comes after the Federal Reserve on Sunday announced that it would slash interest rates, decreasing the target range for the federal funds rate to 0-0.25 percent. President Trump, a frequent Fed critic, praised the move.

The Fed also said it will purchase at least $500 billion in Treasury securities and at least $200 billion in mortgage-backed securities in the months ahead.

The Dow’s dramatic descent on Monday follows a roller-coaster of wild volatility last week.