Key Points:
- Treasury Secretary Howard Lutnick rejects recession predictions, claiming the strategy of tariffs proposed by Donald Trump will lead to $1.3 trillion in new investments, spurring economic growth.
- Despite Lutnick’s positivity, confidence among crypto traders is declining, reflected in the drop of Bitcoin and other cryptocurrencies. The likelihood of a U.S. recession in 2025 has risen to 41% according to Polymarket.
- The recent jobs report showed the addition of 151,000 jobs in February, but indications of slowing growth are surfacing, with the Atlanta Fed’s GDPNow model hinting at a -2.8% growth rate for Q1.
Howard Lutnick asserts the U.S. economy remains robust, countering Wall Street concerns of potential recession. He stated, “Absolutely not,” during a recent appearance on Meet the Press when questioned about the likelihood of a downturn. Lutnick further emphasized, “There’s going to be no recession in America,” and compared the situation to perceptions of Donald Trump a year ago, labeling him a winner.
He argues that the tariff plan aims to compel countries to lower their trade barriers, thereby enhancing American growth and bringing in substantial investments. Although acknowledging that tariffs might increase the costs of foreign goods, he believes that addressing the budget deficit will eventually lower borrowing costs. Moreover, Lutnick predicts a significant boost in economic growth over the next two years.
While U.S. Treasury Secretary Howard Lutnick is optimistic, data suggests crypto traders are less assured. Bitcoin (BTC) fell 7% on Sunday, nearing a low of $78,000. Cryptocurrencies such as Ether (ETH) and Solana (SOL) also experienced declines, with meme coins witnessing significant drops. As stated, “A contract” regarding the probability of a U.S. recession has recently shown increased odds.
The current economic landscape remains complex, balancing a resilient labor market and emerging signs of slowing growth.
