Howard Lutnick Dismisses Recession Concerns as Bitcoin Teeters at $80K
Commerce Secretary Howard Lutnick is pushing back against warnings of a looming U.S. recession, asserting that Trump’s trade policies will drive economic growth rather than hinder it. Meanwhile, the crypto market is reacting with volatility, with Bitcoin (BTC) struggling to hold the $80,000 level.
During an interview on Meet the Press Sunday, Lutnick rejected fears raised by financial analysts who predict that tariffs and trade conflicts could slow down the economy.
“Absolutely not,” he said when asked if Americans should expect a downturn. “These are the same voices who doubted Trump’s ability to lead. The American economy is thriving, and it’s only going to get stronger under his leadership.”
A recession is officially defined as two consecutive quarters of economic contraction, often driven by market imbalances or policy shifts.
Lutnick took to social media to reinforce his stance, framing Trump’s trade strategy as a necessary move to secure long-term economic stability:
“The President is taking bold action. Tariffs are about more than trade—they’re about America’s strength. Canada and Mexico must do their part to curb the fentanyl crisis, and China must play fair. We are not backing down.”
Tariffs: A Catalyst for Growth or a Risky Bet?
Lutnick maintains that Trump’s trade policies will inject $1.3 trillion into the economy and unlock new growth opportunities by compelling foreign markets to open up to American goods.
“We are setting the stage for a massive economic resurgence,” he declared, dismissing concerns from Wall Street giants like JPMorgan and Goldman Sachs that tariffs could trigger a recession. “The next two years will showcase unprecedented American growth.”
While Lutnick acknowledged that tariffs could raise the cost of imports, he argued that they would ultimately reduce the deficit and lead to lower borrowing costs.
“When the budget is balanced, interest rates drop. Mortgage costs come down. The American people will benefit,” he said.
Crypto Markets Signal Uncertainty
Despite Lutnick’s confidence, the crypto market appears to be responding with caution. Bitcoin (BTC) slid 7% on Sunday, dipping to $80,000 and approaching its lowest level of the year at $78,000.
Ethereum (ETH), Solana (SOL), and XRP (XRP) also suffered losses, while meme coins such as Dogecoin (DOGE) and Cardano (ADA) dropped nearly 12%.
On prediction market Polymarket, traders are increasingly hedging against economic uncertainty, with the probability of a 2025 U.S. recession rising to 41%—a 16% jump in recent weeks.
Mixed Economic Indicators Keep Recession Debate Alive
The latest U.S. jobs report revealed that 151,000 jobs were added in February, meeting expectations. However, the unemployment rate inched up to 4.1%, and January’s job numbers were revised downward, according to CoinDesk.
Public sector layoffs tied to White House budget cuts could push unemployment figures higher in the coming months.
While the labor market remains stable, early warning signs of a slowdown are emerging. The Atlanta Fed’s GDPNow model projects a -2.8% GDP growth rate for Q1, adding to concerns about economic momentum.
Still, another Polymarket contract indicates just a 3% chance of a recession occurring before May, suggesting that while fears are growing, the immediate risk of a downturn remains low.
