The Treasury Secretary, Howard Lunick, insists that the American economy is on a solid basis despite worries by Wall Street that a recession is in the cards.
“Absolutely not,” he said during a Sunday edition of Meet The Press when asked if the Americans had to prepare for a slowdown.
“There will be no recession in America,” he continued. “It’s like the same people who thought that 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 a combination of the two.
“The president is on this and he is powerful on it, and he will not remove the foot from the gas.” These prices are part of a drug war. Canada and Mexico must stop the fentanyl flow through our border and China must stop subsidizing production. The Trump administration … pic.twitter.com/ny9x7bx7wu
– Howard Lux (@howardlutnick) March 9, 2025
This argument contradicts the comments made by the president earlier, which did not exclude a recession, appealing to it part of a transition.
Lutnick argued that Trump’s pricing strategy will force other countries to reduce their trade barriers, trigger American growth and cause $ 1.3 billion to new investments.
“We are going to unleash America in the world,” he said in response to the warnings of JPMorgan and Goldman Sachs about a recession induced by prices. “You will see over the next two years the largest growth set from America.”
While Lunick admitted that prices could make foreign goods more expensive, he supervised them in the context of a wider effort to reduce deficit and reduce loan costs.
“When you balance the budget … you reduce interest rates down 150 basic points. Mortgage loans have crashed. The cost of your house will be addressed, “he said.
Crypto traders, however, seem to have the same optimism.
Bitcoin (BTC) fell 7% on Sunday, falling to $ 80,000 and approaching its lowest $ 78,000.
The ether (ETH), Solana (ground) and XRP (XRP) followed, while the pieces even as Dogecoin (Doge) and Cardano (ADA) have plummeted almost 12%.
On Polymarket, bettors are increasingly slowed down for a slowdown, although the chances of occurring remain slim.
A contract requiring the probability of an American recession in 2025 has seen the ratings to go to 41%, an increase of 16% in recent weeks.
Meanwhile, the latest US job report showed 151,000 jobs added in February, Coindesk recently reported, almost in line with expectations, although the unemployment rate reached 4.1% and the January employment gains were revised below.
However, layoffs in the public sector in the efforts of the White House Doge can push these figures in the next quarter.
While the resilience of the labor market has maintained remote recession calls, signs of slowing down growth, the GDPNOW model of Atlanta Fed providing a negative growth rate of 2.8%.
However, another contract only gives 3% of recession before May. The first quarter ends on March 31.
