Treasury Secretary Scott Bessent stated on Sunday that the Trump administration is concentrating on averting a potential financial crisis triggered by substantial governmental expenditures accumulated over recent years.
I can assure you that we were heading towards a financial crisis. Having researched this topic extensively and having taught about it as well, maintaining our current level of expenditures was simply not viable," Bessent stated on NBC’s “Meet the Press.” "Now, we are readjusting and placing ourselves onto a sustainable trajectory.
President Donald Trump Since assuming office, he has prioritized putting the government's financial affairs in order. He established what is known as the Department of Government Efficiency, which is headed by Elon Musk , to lead initiatives for employee layoffs and early retirement benefits across several federal organizations.
Nevertheless, the issue of U.S. debt and deficits has become more severe. In President Trump's initial month in office, the budget deficit for February surpassed the $1 trillion threshold.
Bessent pointed out that there are "no guarantees" against the possibility of a recession.
Recently, the market has experienced a wild fluctuation due to actions taken by Trump. widespread tariffs expressed worries regarding inflation and an economic downturn. On Thursday, the S&P 500 dropped into a 10% correction from its peak in February amid increased market turbulence.
Bessent considers current market retracements as harmless, and he thinks that President Trump’s business-friendly policies will ultimately strengthen both the market and the overall economy in the long term.
"I’ve spent 35 years in the investment industry, and I can assure you that market corrections are beneficial; they’re natural,” he stated. “What isn’t good is when we experience overly optimistic market conditions. This leads to financial crises. It would have been far better if measures were taken back in ‘06 or ‘07 to slow things down. Then, we might not have faced the issues in ‘08.”
"I’m not concerned about the markets. In the long run, implementing sound tax policies, reducing regulations, and ensuring energy security will lead to strong performance in the markets,” Bessent noted additionally. “Remember, one week doesn’t define the market.”
