The secretary of the Treasury, Howard Lutnick, insists that the economy of the United States is standing solid despite Wall Street’s concerns that a recession is in the letters.
“Absolutely not,” he said in a Sunday edition of Meet The Press when asked if Americans should prepare for a recession.
“There will be no recession in the United States,” he continued. “It’s like the same people who thought Donald Trump was not a winner a year ago. Donald Trump is a winner. He will win for the American people.”
A recession is two consecutive quarters of economic contraction, caused by imbalances of external or internal factors, or combination of both.
“The president is in that and is powerful in that, and he will not take his foot from the gas.” These rates are part of a war against drugs. Canada and Mexico must close the Fentanyl flow through our border and China must stop subsidizing production. The Trump administration … pic.twitter.com/ny9x7bx7wu
– Howard Lutnick (@howardlutnick) March 9, 2025
This argument contradicts the comments made by the president previously, which did not rule out a recession, qualifying it from a transition.
Lutnick argued that Trump’s rate strategy will force other countries to reduce their commercial barriers, unleash US growth and drive $ 1.3 billion in new investments.
“We are going to unleash the United States to the world,” he said in response to the warnings of JPMorgan and Goldman Sachs about a recession induced by the rate. “You will see in the next two years the largest set of growth in the United States.”
While Lutnick acknowledged that tariffs could make foreign products more expensive, he framed them as part of a broader effort to reduce the deficit and lower loan costs.
“When the budget balances … reduce interest rates 150 basic points. Mortgages come to break. The cost of your home will crash, “he said.
Cryptographic merchants, however, do not seem to have the same optimism.
Bitcoin (BTC) fell 7% on Sunday, falling to $ 80,000 and near its minimum of 2025 of $ 78,000.
Ethher (eth), Solana (Sol) and XRP (XRP) followed, while meme coins such as Dogecoin (Doge) and Cardano (ADA) fell almost 12%.
In Polymket, the traigators are getting more and more for a deceleration, although the possibilities of one occurring remain thin.
A contract that asks about the probability of a recession of the United States in 2025 has seen the leap of the probabilities and 41%, an increase of 16% in recent weeks.
Meanwhile, the US job report of the USA showed 151,000 jobs added in February, Coindesk recently reported, approximately in line with expectations, although the unemployment rate increased up to 4.1% and January work profits were reviewed lower.
However, layoffs in the public sector as part of the efforts of Dux the White House can raise these numbers the next quarter.
Although the resilience of the labor market has kept recession calls at bay, signs of deceleration of growth are emerging, with the GDPnow model of the Atlanta Fed that predicts a negative growth rate of the second quarter of Q1 of 2.8%.
However, another contract grants only a 3% chance of a recession before May. The first quarter ends on March 31.
