TLDR
- Commerce Secretary Howard Lutnick shrugs off the recession chatter, asserting that Trump's tariff measures will spark a hefty $1.3 trillion surge in investments.
- The price of Bitcoin has fallen by 7% to settle at $80,000, while chances of a recession according to Polymarket have increased to 41%.
- Trump likened tariffs to a 'transitional phase' and didn't completely discard the idea of a recession happening.
- While tariffs might hike prices on foreign products, Lutnick argues that domestically-made goods will become more affordable.
- Tariff exemptions for Canada and Mexico will cease on April 2. At that point, Trump intends to implement reciprocal tariffs on other nations.
Commerce Secretary Howard Lutnick stands firm in denying any suggestions of an impending U.S. recession, ignoring increasing market jitters and a slump in cryptocurrency prices.
Lutnick confidently declared, 'There's no recession coming to America.' This statement was delivered on the Sunday talk show, Meet the Press. He refuted alarming projections from major Wall Street players like JPMorgan and Goldman Sachs regarding a possible economic downturn.
Lutnick's remarks stand in stark contrast to President Trump's more careful approach. When questioned about the likelihood of a recession this year, Trump was hesitant to make a precise forecast, remarking, 'I loathe making predictions of that nature.'
Trump acknowledged upcoming economic hurdles. He described it as a 'transitional period,' emphasizing the significant scale of current changes during a Fox News chat.
Lutnick lauds the tariffs as a strategic economic stimulative measure, contending that Trump's method will compel other nations to dismantle their trade barriers, bringing about $1.3 trillion fresh investments into the U.S. economy.
Lutnick declared, 'We're unleashing America's potential globally,' anticipating huge economic advancements in the upcoming couple of years.
Tariff Strategy – Risk Or Reward
Although Lutnick concedes that tariffs might escalate the cost of foreign products, he positions it as a part of a comprehensive plan aimed at balancing the national budget, and hints that this might subsequently lower borrowing expenses by reducing interest rates.
He asserted, 'Balancing the budget will slash interest rates by 150 basis points, leading to plummeting mortgage rates,' in a detailed interview.
The Commerce Secretary also promised reductions in grocery prices starting in early April, while asserting that American goods will be cheaper even if imported ones might cost more.
Crypto traders, however, don't share the same optimistic outlook on the economy. Bitcoin It plummeted by 7% on Sunday to hit $80,000, edging closer to its projected low of $78,000 for 2025.
Other top cryptocurrencies are also experiencing declines. Ether, Solana, and XRP have all slipped, and meme coins like Dogecoin and Cardano have seen losses nearing 12%. Bitcoin’s Prediction markets show mounting worry over an economic downturn. In Polymarket, there’s been a 16% jump recently with recession odds now at 41% for the U.S. in 2025.
Economic signs are offering mixed signals. The latest U.S. employment reports revealed that the economy added 151,000 jobs in February, which aligns with expectations, although the jobless rate has risen to 4.1%.
The Atlanta Fed's GDPNow tool predicts a negative growth rate of 2.8% for the first quarter, starkly contrasting with Lutnick's rosy economic forecast.
The President is moving forward with reciprocal tariffs starting April 2. Trump conveyed to Fox News that Canada and Mexico shouldn't expect any more leniency post that date.
Maisie, a seasoned journalist in crypto and financial news, has contributed to a range of outlets including Moneycheck.com, level-up-casino-app.com, and Computing.net, and she's the Editor-in-Chief at Blockfresh.com.
