U.S. Commerce Secretary Howard Lutnick has dismissed concerns that the country is heading toward a recession, arguing that Donald Trump’s tariff policies will drive $1.3 trillion in new investments and stimulate long-term economic growth. Speaking on Meet the Press` on Sunday, Lutnick confidently stated, “Absolutely not. There’s going to be no recession in America.”
His remarks come amid growing speculation that the U.S. economy may be slowing down, as reflected in recent data. The Atlanta Federal Reserve’s GDPNow model has projected a negative 2.8% growth rate for the first quarter of 2025, a signal that economic momentum may be weakening.
Meanwhile, the latest U.S. jobs report showed 151,000 new jobs added in February, falling short of expectations and raising concerns about a potential downturn.
Lutnick’s Economic Outlook
Lutnick’s remarks stand in contrast to Trump’s own comments, where the President acknowledged that a recession was not entirely off the table, calling it part of a broader economic transition.
However, Lutnick remains adamant that tariffs will force foreign nations to lower trade barriers, positioning the U.S. for unprecedented growth.
“We’ll unleash America out to the world, grow our economy in a way it’s never grown before. You’re going to see over the next two years, the greatest sign of growth coming from America.
Donald Trump is bringing growth to America, I would never bet on recession, No Chance.,” he stated, pushing back against warnings from JPMorgan and Goldman Sachs about the potential risks of a tariff-driven recession.
He further argued that while tariffs could increase the cost of foreign goods, they are a necessary tool to reduce the national deficit and lower borrowing costs.
“When you balance the budget… you drive interest rates down 150 basis points. Mortgages come smashing down. The cost of your home will come smashing down,” Lutnick claimed, presenting tariffs as a path toward a stronger domestic economy.
Crypto Markets React to Uncertainty
While Lutnick remains optimistic, crypto traders are less convinced. Bitcoin, which had been hovering around $85,000, saw a decline following his comments. As of March 10, 2025, Bitcoin’s price stood at $82,540.19, reflecting a 4.18% decline.
Data from Polymarket, a leading prediction platform, now suggests that the odds of a U.S. recession in 2025 have climbed to 41%, up from previous estimates.
Financial analysts are divided on the implications of current economic policies. While some share Lutnick’s optimism, others point to indicators such as persistent inflation and slowing job growth as potential precursors to an economic slowdown.
This divergence in outlooks contributes to the mixed performance observed across various asset classes, including cryptocurrencies.
Quick Facts:
- No Recession Anticipated: Commerce Secretary Howard Lutnick asserts that the U.S. economy is not heading toward a recession.
- Impact of Tariffs: The Trump administration’s tariff policies have introduced market uncertainties, influencing both traditional and crypto markets.
- Bitcoin’s Volatility: BTC prices have fluctuated around the $80,000 range, with a recent price of $82,540.19, marking a 4.18% decrease.
