US Commerce Secretary Howard Lutnick has dispelled fears of a looming recession, stating that Donald Trump’s economic policies would drive $1.3 trillion in new investment and unleash American growth.
According to a Sunday Meet the Press report, the White House official asserted that the country’s economy was still robust despite ongoing market uncertainties pushing the flagship cryptocurrency below the $80K range.
Commerce Secretary Says No Looming Recession
Speaking to the press, Howard Lutnick denied the possibility of a looming recession, contrasting views expressed by several economists and Wall Street moguls who warned that Trump’s policies would drive the country towards economic contraction. Lutnick categorically stated that:
“There’s going to be no recession in America […] it’s like the same people who thought Donald Trump wasn’t a winner a year ago. Donald Trump is a winner. He’s going to win for the American people.”
Crypto Traders Unimpressed
The optimistic sentiments expressed by Howard Lutnick fly in the face of less confident crypto investors, who have seen the price of Bitcoin and other cryptocurrencies fall to the lowest in 2025, reaching $76K before bouncing back to $80,426 at the time of writing. Altcoins, including Ether, Solana, and XRP, followed Bitcoin’s dropping trend, with meme coins like Dogecoin and Cardano falling by nearly 12%.
The ongoing market sentiment reflects the prediction markets. According to Polymarket, the odds of the US looming recession in 2025 stand at 41%, representing a 16% increase in recent weeks. Even as the US Jobs report revealed 151,000 jobs added in February, signs of slowing growth have emerged.
Lutnick Highly Optimistic
Howard Lutnick argues that the tariff strategy suggested by Donald Trump will force other countries to lower existing trade barriers and enable the US to unleash growth and drive at least $1.3 trillion in new investment. In response to a warning from Goldman Sachs and JPMorgan on the possibility of a tariff-induced recession. Lutnick said:
“We’re going to unleash America out to the world […] you are going to see the greatest growth coming from America over the next two years.”
Trump’s More Guarded Statement
It should be noted that the predictions by Howard Lutnick fly in the face of Trump’s more guarded statements who said when asked about the possibility that his policies will create a recession:
“I hate to predict things like that.”
Trump acknowledged that there would be a transition period due to the significant changes his administration was implementing. Lutnick believes prices of goods will become cheaper beginning in April even as foreign goods start costing more due to the trade tariffs. However, cryptocurrency traders appear less optimistic about the economic outlook.
Conclusion
Despite Howard Lutnick’s brave face, the US President’s refusal to rule out the possibility of a recession in 2025 and the escalating trade wars caused by tariffs imposed by the new administration has disrupted the entire market. Trump himself has said the market shakedown was inevitable, calling it a part of a “transition” to restore wealth, but he admits to potential disruptions. While highs have historically followed price corrections, the lack of an immediate market reaction suggests immediate Bitcoin buying pressure.
Frequently Asked Questions (FAQs)
Are tariffs good or bad for the economy?
Most economists agree that tariffs are bad for the economy since they prevent countries from reaping the benefits of economic specialization.
How do tariffs affect the economy?
Trade tariffs have winners and losers. They can generate billions of dollars of added revenue for a country, and domestic industries and manufacturers tend to benefit.
How do tariffs affect the crypto market?
The tariffs tend to increase inflation and drive up the prices of foreign goods, pushing investors toward less risky investments like crypto.
What is their effect on the crypto market?
Experts believe Trump’s trade war tariffs have triggered volatility in crypto markets, with Bitcoin dropping to $76,000 before rebounding.
Appendix: Glossary of Key Terms
Recession: A significant, widespread, and prolonged downturn in economic activity
Tariffs: A tax or duty to be paid on a particular class of imports or exports.
Trade Policies: A set of laws and regulations governing how a country exchanges its goods and services with other countries.
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